This archive report was first published on 4 September 2019.
As the debate around revenue sharing between the national and county governments continues, it has become clear that counties must begin to think about generating their own revenue, as anticipated by Article 209(3) of the Constitution.
Despite the Constitution's provision that at least 15% of government revenue should be allocated to counties, many devolved units are struggling to pay their workers and run their affairs due to their reliance on national government remittances.
According to the National Treasury's budget policy statement last year, administrative inefficiencies and gaps in policy and legislation have contributed significantly to the low levels of own-source revenue in the counties.
President Uhuru Kenyatta recently urged counties to be self-sufficient, stating that there is no more money to allocate to their increasing needs. To achieve this, counties must carry out a comprehensive revenue mapping exercise to identify their revenue streams and income.
They can start by maximising the collection of property rates, entertainment taxes, outdoor advertisements, market entry fees, and parking fees. Additionally, they should develop policies and legislation to assist in revenue collection, such as establishing revenue administration boards or directorates to streamline the collection of revenue.
Public participation is also crucial in matters of revenue allocation. Bungoma County's experience with involving local boda boda riders in their Finance Act 2018 is a good example of how this can be achieved. By automating revenue collection and stepping up enforcement against tax and rate defaulters, counties can minimise 'leakages' and ensure that they are generating their own revenue.
Ultimately, own-revenue will allow counties to sustain their operations and inch towards greater development.
— Mr Alubala is an advocacy and child rights governance technical specialist at Save the Children. @ialubala
