New report by the Controller of Budget shows that counties generated 54 per cent of their annual revenue target between July 2025 and March 2026, with growth largely driven by hospital fees.
County governments collected Sh53.88 billion in own-source revenue (OSR) in the first nine months of the 2025/26 financial year, an increase of Sh7.97 billion from the Sh45.91 billion raised during the same period last year, according to a new report by the Controller of Budget (CoB).
The report shows that counties generated 54 per cent of their annual revenue target of Sh100.13 billion between July 2025 and March 2026, with growth largely driven by hospital fees under the Facility Improvement Fund (FIF) and tourism-related income.
Of the total collections, Sh23.45 billion came from hospital fees, while traditional revenue streams contributed Sh30.43 billion.
According to the report, Samburu, Garissa and Kirinyaga emerged as the best-performing counties. Samburu exceeded its annual target by achieving 138 per cent, followed by Garissa at 109 per cent and Kirinyaga at 102 per cent. West Pokot and Trans Nzoia posted 84 per cent and 81 per cent respectively.
Overall, nine counties attained more than 75 per cent of their annual targets, 24 achieved between 50 and 74 per cent, while 14 recorded less than 49 per cent.
The poorest performers were Turkana (14 per cent), Siaya (20 per cent), Kisumu (31 per cent), Kisii (37 per cent), and Mandera and Kericho, both at 40 per cent.
Controller of Budget Margaret Nyakang’o attributed the weak performance in some counties to poor returns from ordinary revenue streams, inadequate use of revenue forecasting tools and low hospital fee collections.
Samburu collected Sh391.1 million, up 63 per cent from Sh240.4 million in the corresponding period last year. Tourism remained its biggest revenue source, with game park fees generating Sh231.97 million, or 59 per cent of total collections. Hospital fees contributed Sh113.1 million.
Garissa raised Sh489.13 million, a 58 per cent increase from Sh312.2 million last year. Hospital fees accounted for Sh444.86 million, representing 91 per cent of total revenue. The report linked poor performance in other revenue streams to continued reliance on manual collection systems.
The CoB attributed the increase in Garissa’s revenue to higher hospital collections following increased enrolment under the Social Health Authority (SHA), while drought affected livestock cess collections.
Kirinyaga collected Sh779.54 million, surpassing its annual target and recording a 44 per cent increase from Sh542.66 million in the previous financial year. Hospital fees contributed Sh454.8 million, while automation of revenue systems boosted collections. Among larger counties, Kiambu raised Sh3.9 billion, up from Sh3.33 billion last year, while Murang’a collected Sh1.16 billion, a 39 per cent increase from Sh832.42 million.
“The [Murang’a] County Government indicated that it has automated all 25 revenue streams. The system used for FIF collections is AfyaKE, which has been operational since July 1, 2023,” the report notes.
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