The district’s revenue is falling by Sh1.3 billion due to the shaky economy.

Capital markets

The district’s revenue is falling by Sh1.3 billion due to the shaky economy.


Household Controller Margaret Nyakang’o. FILE PHOTO | NMG

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summary

  • Internal revenue for the counties fell $ 1.33 billion in June, highlighting the struggles the units are facing as the economy recovers from the disruption caused by the coronavirus.
  • Data from the Controller of Budget (CoB) office shows the 47 decentralized units raised $ 34.44 billion during the reporting period, compared to $ 35.77 billion raised the previous year.
  • The decline came despite the easing of restrictions imposed from March last year after Kenya registered the first case of coronavirus disease (Covid-19).

Internal revenue for the counties fell $ 1.33 billion in June, highlighting the struggles the units are facing as the economy recovers from the disruption caused by the coronavirus.

Data from the Office of the Controller of Budget (CoB) shows that the 47 units transferred during the reporting period amounted to Sh 34.44 billion.

The decline came despite the easing of restrictions imposed from March last year after Kenya registered the first case of coronavirus disease (Covid-19).

Narok topped the list of counties with the greatest falls, its revenue falling 73.6 percent to 618.9 million Shillings, while Embu declined 26.3 percent to 375.3 million Shillings. recorded, while the collections for machakos rose 5.6 percent to 1.29 billion Sh. went back.

Dismal revenue collections will continue to squeeze funds for the provision of basic services such as health and will create a pile of unpaid bills in the counties.

“The inadequate performance of the in-house revenue collection implies that some planned activities may not be implemented due to a lack of funds in the fiscal year and therefore lead to an accumulation of outstanding invoices,” Margaret Nyakango said in the report.

June through October is the peak wildebeest migration season in the Masai Mara Game Reserve, but Narok stared at losses in the absence of tourists, even as the state allowed domestic and international flights to resume.

The data shows that only Turkana, Tana River, Uasin Gishu, Lamu, and Migori met or exceeded their annual sales targets for the year.

Kenya began easing restrictions last July, which included a dusk-to-dawn curfew, movement bans in four counties, including Nairobi and Mombasa, and bans on social gatherings to revive the troubled economy.

But businesses have remained subdued despite the easing of restrictions, with some closing and districts denying collections from flows that include tariffs, single business permits (SBPs) and liquor levies.

Parking and traffic for trucks carrying agricultural products and building materials through the counties have also been disrupted.

Counties have also blamed a weak workforce, corrupt officials, and the use of outdated systems such as valuation lists that do not reflect the appreciation of land and homes in the marketplace for low revenues.

Dismal internal revenue collections have led counties to rely on remittances from the national treasury to pay salaries and provide basic services like health and road construction.

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