Governors in three Nyanza counties are racing against time to formulate mechanisms to improve their locally collected revenues.
This is part of a strategy to expand their revenue streams and seal loopholes that resulted in the loss of some of the funds collected.
In the last few weeks, Kisumu, Migori and Homa Bay counties have started implementing strategies to improve their collections.
In Migori, Governor Ochilo Ayacko's administration is planning to roll out a cashless system of payment to weed out pilferage of funds. The devolved unit plans to raise Sh1 billion in the current financial year.
This is after the governor appointed a nine-member county revenue authority board to help spearhead the revenue collection in the county.
Governor Ayacko intimated that though they have a target of collecting Sh1 billion in every financial year, his government will not increase taxes on the people.
"What we have embarked on is to vigorously collect taxes or revenue in this county. I will not follow what the government is doing in increasing taxes. I will not add a penny to the taxes we collect here," the governor stated.
The governor disclosed that his administration would increase efficiency and it was for the business people who dodged paying taxes so that they pay the revenue that are supposed to be paid.
The county government has been struggling to reach a target of Sh600 million set for the financial year 2023/2024. In the past, the devolved unit also failed to meet its revenue targets.
In the 2022/2023 financial year, it collected about Sh400 million, which is estimated to be 30 per cent of the revenue the county is supposed to be getting.
Apart from the establishment of the revenue board, the devolved unit has also enacted The County Revenue Administration Bill to guide on management of revenue.
Among the board members tasked with delivery the county's revenue target include County Secretary Oscar Olima, Chief Officer Finance John Achuora, former nominated MCA Esther Onana, Emmanuel Odhiambo, John Lugedi, Emmanuel Mwita as members, and Director Revenue Maurice Oindo.
Mr. Kasera said there were a lot of loopholes that have made the county not do well in revenue collection.
In Kisumu, Governor Anyang' Nyong'o has unveiled a Revenue Board as his administration intensifies efforts to increase revenue collection.
The key mandate of the board is to work with various county departments to identify new revenue streams and meet the County's source revenue targets.
According to Deputy Governor Dr Mathews Owili, the board is expected to raise the County's revenue to Sh2 billion from the current Sh1.2 billion.
"We expect the board to help the Governor leave a good legacy. They are expected to work hard to ensure that the county has a sound revenue base," Owili said.
The nine-member board will be chaired by businessman Dr Hezron Otieno MC'Obewa. Other members include the County's chief officer of finance and the County Attorney, among others.
Owili pledged that the County government would provide maximum support to the board to enable it to deliver on its mandate.
"As the executive, we promise you full support. You have a full mandate, which is anchored in the County Government Act, to collect revenue for the county and we will support you to deliver on this." Owili said.
The deputy governor added that the new board, which has a section of its members drawn from the private sector, is also tasked with the responsibility of lobbying the private sector to comply with the payment of taxes.
In Homa Bay, the measures adopted by Governor Gladys wanga's Homa Bay County to increase its collection of local revenue have started paying off as the devolved unit registered an increase in the 2022/2023 financial year
According to Governor Wanga, the county collected Sh859.4 million for the 2022/2023 financial year. The figure represents a 150 per cent increase from Sh337 million that was collected in 2021/2022.
Although Wanga's reign began after the financial year had started, a series of changes to the revenue system has revamped the collection.
In June, the devolved unit managed to collect Sh111.1 million, which the governor described as a major improvement.
"These achievements are just the beginning as we aim to surpass the Sh1 billion target we have set for the 2023/2024 financial year," said Wanga.
According to the governor, the decision to expand tax brackets, implementation of an enhanced revenue collection framework and increased human resources has been a massive game-changer.
For several years, the devolved unit had been struggling to improve its local revenue and was flagged several times by the Office of the Controller of Budget for failing to meet their revenue targets.
Last year, OCOB criticized the devolved unit over weak budget practices that affected even collection of revenue in the report capturing the 2021/2022 financial year.
And as part of her efforts to reverse the trends, Wanga's administration has embraced a cashless system for collecting revenue and has also overhauled staff at the department.
The county government introduced the cashless system to boost revenue collection and to prevent pilferage of funds.
