Reforms:County revenue target set at Sh4b

Nakuru Governor Lee Kinyanjui (Center) signs three bills into Acts on March 11, 2021 flanked by ward representatives and members of his cabinet. [Kennedy Gachuhi,Standard].

The newly established Nakuru County Revenue Authority has been given a target of Sh4 billion annually up from Sh2 billion.

The County Revenue Authority Act 2020, which takes effect from next month, provides a legal framework for the establishment of the semi-autonomous revenue collection body. 

Speaking to The Standard yesterday, Governor Lee Kinyanjui said his administration has been collecting revenue that is way below its target, hence the need for the new legal framework to change the status quo. 

“At the moment, we are only collecting 40 per cent of what we should be collecting. We can easily collect between Sh4 billion and Sh5 billion with a good plan and the Nakuru County Revenue Authority will help us achieve this dream,” said Kinyanjui. 

In the past four financial years, the county has been collecting an average of Sh2.2 billion.

Slight drop

“In the 2017/2018 financial year, the county collected Sh2.2 billion while in 2018/2019, the county collected Sh2.8 billion and Sh2.4 billion in 2019/2020 financial year. The revenues slightly dropped last year due to the Covid-19 pandemic,” said Kinyanjui. 

The move also comes at a time when Nakuru town is demanding to elevated to a city and the process requires proof of its capacity to generate its own revenue to run its systems for effective service delivery. 

Kinyanjui said that the Nakuru County Revenue Authority which mirrors Kenya Revenue Authority (KRA) will be implemented in a few weeks with the recruitment of its staff set to be announced early next month. 

For economic viability, the law provides that the Authority shall finance its own operations from its collections which shall also ensure it maintains a high degree of independence from the county government. 

“The authority will not be funded by the county government. This will make sure a future administration does not cripple it by under-funding it. Its expenditure has been capped at two per cent of what they shall collect to cater for its operations and salaries,” said Kinyanjui.