This archive report was first published on 3 September 2019.
Devolution has brought goods and services closer to the people, but it has come at a significant cost. Counties have struggled to solidify a strong revenue and collection base to pay for even basic services.
According to the Division of Revenue Bill 2019, the national government is obligated to contribute 30% of the revenue to counties, which is double the minimum threshold required under Article 203(2) of the Constitution.
However, the national government is struggling to pay its own bills and often resorts to borrowing. It will find it unsustainable to bear the shortfall in county government revenue.
Counties must take responsibility for their finances and work harder to collect revenue that they are entitled to. They should spend less time arguing about what they feel they are entitled to from the national government and more time strengthening their financial bases.
As stated in the Explanatory Memorandum to the Division of Revenue Bill 2019, the proposed equitable share allocated to county governments is way above the minimum threshold required under the Constitution.
