Nyanza counties post rise in own source revenue

Kisii Governor Simba Arati. [Edward Kiplimo, Standard]

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.