Nyanza counties under fire for dismal performance in revenue collection

Homa Bay Governor Cyprian Awiti (Photo: Courtesy)

Homa Bay and Nyamira counties under performed in local revenue collection during the first nine months of 2016-2017 Financial Year (FY) despite automating their revenue collection.

However, they registered an increase in expenditure on allowances and foreign trips during the same period, according to Controller of Budget (COB) Agnes Odhiambo.

In her report titled County government's budget review report for first nine months, Ms Odhiambo said Homa Bay County registered a decrease of about 17 per cent in revenue collection.

During the period, the county collected Sh114.63 million, representing 49 per cent of the annual revenue target compared to Sh138 million collected in a similar period during the 2015-2016 FY.

The COB also noted that the spending of the collected revenue was irregular, with some departments failing to submit their receipts.

Some of the revenue was spent at source by the county government, hampering implementation of the budget.

"From analysis of bank statements and expenditure returns, the COB has noted that the Department of Health did not bank all its revenue receipts into the CRF (County Revenue Fund) account," said Ms Odhiambo.

In Nyamira County, revenue collection decreased by 4.1 per cent from Sh79.6 million registered in the 2015-2016 Financial Year to Sh76.3 million, representing 38.5 per cent of the annual revenue target.

The COB also indicated that the county's wage bill ballooned by about 6 per cent.

"The County Treasury should formulate and implement strategies to enhance local revenue collection," she said.

Further, Odhiambo accused Kisii County of skewed utilisation of collected local revenue.

Two of the county's departments used part of their collected revenue at source and failed to file receipts on how the money was utilised.

Wage bill

"From the analysis of bank statements and expenditure returns, the COB noted that the Department of Health Services and the Department of Trade Regulations and Development did not bank all local revenue receipts into the CRF account," noted Odhiambo.

As a result, she said, the move hampered implementation of the budget that grappled with a high wage bill.

During the period, wage bill increased by 16.1 per cent from Sh2.61 billion in the first nine months of the 2015-16 FY to Sh2.88 billion, representing a 53.8 per cent of the total expenditure.