Nyakang'o censures 11 South Rift counties for missing revenue collection targets

Controller of Budget Margaret Nyakang'o during the NADCO talks at Bomas of Kenya, Nairobi on October 31, 2023. [David Gichuru, Standard] The Controller of Budget has censured counties in the South Rift region for failing to meet local revenue targets. Dr Margaret Nyakang'o, in her latest review of the budget performance of the 47 devolved units, pointed out that most have failed to comply with the law in implementing their budgets. She highlighted extravagance in the use of money by the counties and their inability to collect sufficient revenue to fund their operations. The County Budget Implementation Review Report covers the first nine months of the 2023/24 financial year, running between July last year and March this year. Counties in the South Rift region included Nakuru, Narok, Kericho, Baringo, Bomet, Kajiado, and Laikipia. The report observed that most counties were maintaining multiple accounts in various commercial banks, while salary payment for some staff was paid manually outside the established payroll system. The Controller warned that manual payment of workers' salaries was prone to abuse and could result in loss of public funds. Pending bills She further expressed concern that the county governments had also underperformed in their source revenue collection and had high levels of pending bills. The audit report indicated that whereas Narok County had projected to collect a total of Sh5.1 billion from its revenue sources, it realised a sum of Sh3.9 billion, representing a 77 percent performance rate. The report indicates by the end of March this year, the county governments had not yet settled pending bills amounting to Sh987 million. The Controller of Budget noted that the county had processed salary payments amounting to Sh274 million through manual payroll contrary to the law. The county government also failed to submit quarterly reports for Scholarship and Education Benefit Funds, which had been allocated Sh400 million, Car Loans and Mortgage for Members of the County Assembly and Staff Fund, which was allocated Sh108 million. The four funds that did not submit the quarterly reports had been allocated Sh582 million, the report stated. Governor Patrick Ole Ntutu's administration incurred Sh270 million in domestic travel comprised of Sh119 million by the County Assembly and Sh151 million by the County Executive. The review report indicates that Narok County operated 27 bank accounts in commercial banks contrary to the law. Banks accounts Kericho County, which had a revenue target of Sh1.2 billion, managed to raise a paltry Sh392.3 million, accounting for 30.8 percent of the set target. Out of the total revenue collection, the county government obtained a high revenue of Sh149 million from the health facilities in the county. The county government was censured for failing to settle the pending bill of Sh403 million as of the end of March 2024, with the Controller of Budget directing it to clear the same by the end of the financial year. The review report further revealed that although most workers received their salaries through the Integrated Personnel and Payroll Database (IPPD) System, several employees were paid a total of Sh151 million through manual payroll. The domestic travel bill amounted to Sh265 million, which comprised Sh158 incurred by the county assembly and Sh107 million by the Executive. Governor Eric Mutai's administration was also censured for maintaining 25 bank accounts at various commercial banks in violation of the Public Finance Management Act and other related regulations. In Nakuru County, the report states it collected Sh2.3 billion out of the set total revenue target of Sh3.8 billion representing a 62.9 percent performance rate. Out of the total revenue collection, a sum of Sh1 billion was realized from health facilities within the county. CoB noted that the county government still had pending bills of Sh1.22 billion as of the end of March 2024. The report indicates that the county executive spent Sh5.53 billion to pay workers' salaries, which amounted to 36.9 percent of available revenue. The review further indicated that a total of Sh192 million was processed through manual payroll, contrary to the law. The report indicates that the county government operated 12 bank accounts in various commercial banks. During the period under review, domestic travel amounted to sh234 million which comprised Sh85.8 million spent by the County Assembly and Sh148 million by the Executive. In Bomet, Governor Hilary Barchok's administration had projected to raise Sh332 million from its revenue streams but only managed to collect Sh157 million which is 47.3 percent of the projected target. The review established that the county government raised Sh52 million from health facilities while property charges realized Sh51 million. The CoB noted that 11 percent of workers amounting to Sh287 million paid manually, outside the established integrated payroll payment system in violation of the law. Game Park fees The report advises the county government to close 15 bank accounts in various commercial banks and instead open the accounts at the CBK as required by the law. According to the audit, Baringo County projected to collect Sh450 million but realized Sh272 million which accounted for 60.6 percent of the set revenue target. Out of the total revenue raised, Governor Benjamin Cheboi's administration collected Sh130 million which accounted for 48 percent of the total revenue from various health facilities with another sum of Sh32 million realized from game park fees, while single business permits raised Sh24 million. The report observed that Baringo operated 304 bank accounts at various commercial banks contrary to the laid down legal procedures. On its part, Samburu County which had projected to raise Sh760 million managed to collect Sh402 million representing a 53 percent performance rate. Governor Lati Lelelit's administration said Sh175 million of the total revenue was collected from fees from various game reserves. The Kajiado County under the leadership of Governor Joseph Ole Lenku set a revenue target of Sh1.5 billion but only managed to raise Sh729.5 million accounting for 48.1 percent of the total target. It realized the highest revenue of Sh202 million out of the total figure collected from single business permits. The review report revealed that as of the end of March 2024, the county government owed creditors a total of Sh1.2 billion. The county government also failed to comply with the law and paid a section of workers' salaries amounting to Sh169 million through manual payroll. Laikipia County led by Governor Joshua Irungu had projected to raise a target of Sh1.4 billion from its revenue source but ended up collecting Sh620 million accounting for 42 percent of the target. It raised Sh257 million from health facilities translating to 41 percent of the total revenue collected. The Controller of the Budget expressed her concern over the county government's underperformance in revenue collection and the high pending bills which amounted to Sh1.6 billion as of the end of March 2024.

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