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29 counties named for missing revenue targets

By Silah Koskei | Published Mon, June 11th 2018 at 00:00, Updated June 11th 2018 at 11:21 GMT +3
Nakuru Governor Lee Kinyanjui with Commission on Revenue Allocation chairperson Jane Kiringai at the county headquarters. [Joseph Kipsang, Standard]

In summary

  • Narok missed targets by the widest margin
  • Failure to collect adequate revenue means that counties have to rely on their shareable revenue from the national government.
  • The 18 governors who collected adequate revenues were rewarded with Sh6.3 billion

Twenty nine governors failed to grow their revenue base in the 2016-2017 financial year.

The remaining 18 who did were rewarded with Sh6.3 billion - to be shared between them.

In the North Rift, governors Jackson Mandago (Uasin Gishu), Patrick Khaemba (Trans Nzoia) and Alex Tolgos (Elgeyo Marakwet) are listed in bottom tier of governors whose revenue collection did not match that of 2015-2016.

Revenue collected in Uasin Gishu dropped by Sh55 million and Elgeyo Marakwet Sh30 million. Trans Nzoia County missed its previous mark by Sh147 million. 

At the Coast, Kwale Governor Salim Mvurya fell short by Sh27 million, while in Western region Wycliffe Oparanya of Kakamega had a deficit of Sh61 million.

Narok Governor Samuel Tunai missed targets by the widest margin, collecting Sh1.5 billion against Sh1.7 billion in previous financial year. This represented a difference of Sh219 million.

Mwangi wa Iria's Murang’a County also missed out on the Commission of Revenue Allocation (CRA) money due to a Sh110 million deficit in revenue collection. He collected Sh506 million against Sh617 million collected the previous year.

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Other governors that experienced a drop are Kisii’s James Ongwae (Sh34 million), John Nyagarama of Nyamira (Sh13 million), Cyprian Awiti of Homa Bay (Sh39 million) and Migori’s Okoth Obado (Sh48 million).

According to a 2012 resolution by Parliament, CRA uses five parameters as basis for sharing revenue within counties.

The five are population - which accounts for 45 per cent, poverty index (20 per cent), land area (eight per cent), basic equal share (25 per cent) and fiscal responsibility at two per cent.

Governors who will benefit from the fiscal responsibility incentive are Hassan Joho (Mombasa), Fahim Twaha (Lamu), Alfred Mutua (Machakos), Moses Lenolkulal (Samburu), Joyce Laboso (Bomet), Amason Kingi (Kilifi), Paul Chepkwony (Kericho) and Josphat Nanok (Turkana).

Others are Mohamud Mohamed Ali (Marsabit), Cornel Rasanga (Siaya), Martin Wambora (Embu), Francis Kimemia (Nyandarua), Anyang' Nyong'o (Kisumu), Stanley Kiptis (Baringo), Kivutha Kibwana (Makueni), Kiraitu Murungi (Meru), Patrick Wangamati (Bungoma) and Stephen Sang (Nandi).

Mombasa will receive the highest amount - Sh 1.2 billion, while Meru will receive the least - Sh16 million. 

Additional money

CRA gave a fiscal effort score of zero for counties that failed to improve on their revenue collections. The fiscal effort is calculated as the increase in county own source revenue collected from the previous two financial years.

CRA Chairperson Jane Kiringai explained why counties that increase their revenue will get additional money.

“In the current CRA formula for equitable sharing of revenue, there is a parameter on fiscal responsibility…this means that counties which demonstrated financial discipline will receive more finances,” said Ms Kiringai during the third county revenue Enhancement and Automation Conference in Kwale on May 31.

Sixteen of the 29 governors who missed out on the funds, will bear the burden of their predecessors who were in office when the counties failed to meet revenue targets. They include John Lonyangapuo (West Pokot) whose county was ranked last.

Others are Mohamed Abdi (Wajir), Wilbur Ottichilo (Vihiga), Muthomi Njuki (Tharaka Nithi),  Dhadho Godhana (Tana River), Granton Samboja (Taita Taveta) and Mutahi Kahiga (Nyeri)

Nakuru's Lee Kinjanjui, Mike Sonko (Nairobi), Ndiritu Muriithi (Laikipia), Charity Ngilu (Kitui), Anne Waiguru (Kirinyaga), Ferdinand Waititu (Kiambu), Joseph ole Lenku (Kajiado), Mohammed Kuti (Isiolo) and Ali Korane (Garissa), are also on this list.

Failure to collect adequate revenue means that counties have to rely on their shareable revenue from the national government.

Budget experts raised concerns over low collection of revenue arguing that it affects service delivery.

“The revelations will have implications on counties because in every allocation, county chiefs have a responsibility in growing the economy besides providing service delivery. It is clear that corruption is still rampant in devolved units despite various sources of raising revenue,” said Timothy Kiprono a budget analyst.

But Uasin Gishu Governor Jackson Mandago took issue with the criteria used by CRA in arriving at the 18 counties set to benefit.

“It is surprising that my county has not been considered. Come and look at the projects we have done and go to other counties and compare. We have never misappropriated funds,” he said.

Uasin Gishu Finance Executive Julius Rutto called for a review of the formula to focus on other parameters.


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