The Controller of Budget (CoB) is recommending the revision of own source revenue (OSR) targets by counties to align with realistic and achievable targets, as the latest data points to devolved units missing their combined revenue target of Ksh 87.11 billion.
- •In the first nine months of the year, the counties raised Ksh 45.91 billion from local revenue sources, which accounted for 53% of the annual local revenue target of Ksh 87.11 billion.
- •Five counties exceeded 75% of their annual targets: Tana River (172%), Garissa (104%), Narok (99%), Samburu (85%), and Kirinyaga (78%).
- •Taita Taveta, Kisumu, Bungoma, and Machakos counties all reported revenue below 40% of target, while 11 counties posted revenues between 40-50% of their target.
“For County Governments whose OSR performance in the review period fell short of their projected targets for the first nine months of FY 2024/25, the Controller of Budget recommends implementing strategies to collect the remaining balance within the available time frame,” said Dr Margaret Nyakang’o, Controller of Budget.
“Additionally, these counties should consider revising their OSR projections for the next period to align with realistic and achievable targets, which can be achieved by using an objective revenue forecasting model.”
Tana River’s impressive revenue was mainly due to gypsum extraction income in the county in the nine months ending March 2025. Garissa County’s positive OSR results are linked to revenue collection from the Facility Improvement Fund(FIF), which exceeded its target following the enactment of the FIF Act. The timely supply of drugs also facilitated smooth operations in health facilities, increasing revenue from user charges and public health fees.
The counties with OSR performance above 40% but below 50% include Nyamira County (47%), Kilif County (46%), Busia County (46%), Siaya County (44%), Embu County (%), Nandi County (44%), Kajiado County (43%), Kiambu County (42%), Kwale County (42%), Kisii County (41%), Bomet County (40%).
In the first nine months of FY 2024/25, the CoB approved the transfer of Kshs 255.54 billion as the equitable share of revenue raised nationally from the Consolidated Fund to the various County Revenue Funds. The transferred amounts included Kshs 30.83 billion, which was in arrears from FY 2023/24.
Recurrent expenditure was Ksh 229.62 billion, representing 61%t of the annual recurrent budget, a decrease from an absorption rate of 64% reported in the first nine months of FY 2023/24. Development expenditure amounted to Ksh 56.87 billion, representing an absorption rate of 26% and an increase from 22% in the first nine months of FY 2023/23.
