Counties in the larger Nyanza recorded an increase in own source revenue (OSR) in the financial year 2022/23.
Nyamira Governor Amos Nyaribo recorded an increase of 46.9 per cent in OSR in the first nine months of the financial year 2022/23.
The county generated a total of Sh194.34 million from own source revenue, which represented an increase of 46.9 per cent compared to Sh132.44 million realised in a similar period in the financial year 2021/22.
This is the highest the county government has hit in own source revenue in the last seven years.
The highest revenue of Sh18.66 million was from single business permits, contributing 28 per cent of the total OSR collected during the period. Revenue from the health sector, referred to as Appropriation in Aid, amounted to Sh128.84 million, representing 66.3 per cent of the overall OSR in the first nine months of FY 2022/23.
The county has harmonised revenue collection along the county's common borders to increase collection.
However, Kisii county was the only devolved unit in the larger Nyanza region that recorded a decrease in OSR.
In the said period the county raised Sh252.07 million as OSR, representing a decrease of 21.9 per cent compared to Sh322.84 million realised in a similar period in the financial year 2021/22.
Cashless system
Governor Simba Arati targets to raise Sh2 billion as OSR through automation of revenue collection in the next financial year.
In the first nine months of the financial year 2022/23, Homa Bay county generated Sh159.56 million from OSR, which represented an increase of 20 per cent compared to Sh132.92 million realised in a similar period last year representing 33.7 per cent of the annual target and 2.9per cent of the equitable revenue share disbursed during the period.
The last regime had budgeted for Sh472 million from OSR for the current financial year.
Governor Gladys Wanga noted that the cashless revenue collection system put in place since October last year bore fruit.
Kisumu county, in the nine months under review, received Sh4.62 billion as equitable share and raised Sh823.63 million from OSR and Sh70.01 million as conditional grants.
To finance the budget, the county expects to receive Sh8.03 billion as the equitable share of revenue, generate Sh1.76 billion from OSR and Sh1.60 billion as conditional grants.
The OSR in the nine months represented an increase of 5.3 per cent compared to Sh784.23 million realised in a similar period in the financial year 2021/22.
Three months ago, the Migori county government came under fire from traders and activists for failing to automate revenue collection exposing them at risk of fraud from unscrupulous staff.
Migori Deputy Governor Gimunta Mahiri said payments had been low because of lack of a proper framework to guide the process.
"We are coming up with a Bill to legalise the automation of revenue collection. Since the onset of devolution we have been only collecting 30 percent of our target," he said
Controller of Budget (CoB) said the county generated a total of Sh288.26 million from OSR, which represented an increase of 5.9 per cent compared to Sh272.15 million realised in a similar period in the financial year 2021/22.
The county had budgeted to generate Sh450 million (4.4 per cent) from OSR for the current financial year.
Siaya Governor James Orengo generated a total of Sh358.74 million from OSR, which represented an increase of 13.4 per cent compared to Sh 316.30 million realised in a similar period in the financial year 2021/22.
The county revenue collection target for the next financial year has been set at Sh1 billion. Commission on Revenue Allocation predicts that the county's OSR could hit Sh2 billion.
In the same period, CoB noted the continued use of manual payroll by Homa Bay, Migori and Kisii counties. Personnel emoluments amounting to Sh 634.12 million were processed through the manual payroll in Homa Bay county.
In Kisii personnel emoluments amounting to Sh39.86 million were processed through the manual payroll while in Migori Sh169.59 million.
