This archive report was first published on 9 October 2019.
October 9, 2019
Counties in Kenya are struggling to balance their budgets, with Kisumu and Homa Bay facing significant financial challenges. According to a report by the Controller of Budget, these counties are collecting less revenue while spending more on staff salaries and allowances.
Between July 2017 and June 2018, Kisumu County collected Sh876 million in revenue. However, this declined to Sh842.82 million between July 2018 and June 2019, a drop of Sh32 million. Homa Bay County also experienced a decline in revenue, from Sh101 million in 2017/2018 to Sh97.03 million in 2018/2019, a drop of Sh4.97 million.
Despite imposing new taxes, including a Sh20,000 licensing fee for hotels and a Sh500 fee per training session for teams using Jomo Kenyatta grounds, the counties were unable to seal the revenue gaps. The increased wage bill, which rose by 2.5 percent in Kisumu and 3.1 percent in Homa Bay, further exacerbated the financial challenges.
The Controller of Budget noted that the counties' growing debt is also a concern. As of June 30, 2019, Homa Bay had bills totaling Sh933 million, while Kisumu had a debt of Sh1.3 billion.
Other counties in the region, such as Migori, Siaya, Kisii, and Nyamira, have shown improvement in revenue collection. Migori topped the list, collecting Sh380 million, an increase of Sh157.5 million. Siaya increased its collection by Sh50 million, while Kisii and Nyamira collected Sh74.6 million and Sh68.8 million, respectively.
