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DP William Ruto asks counties to collect more revenue

COUNTIES
By Antony Gitonga | September 24th 2015

Deputy President William Ruto has said counties are collecting limited revenue because they  are relying on outdated guidelines used by the defunct local authorities. Ruto has challenged them to enact new regulations to seal public finance loopholes.

Altogether, the 47 county governments collect Sh30 billion and Ruto cited the failure to enact Finance acts as the reason for the low collections.

"In some instances, counties continue to mobilise local revenue on the basis of outdated guidelines developed by defunct local authorities," Ruto said yesterday when he officially opened a two-day county own-source revenue enhancement workshop at the Great Rift Valley Lodge in Naivasha.

Ruto said that a legal framework was being formulated to allow counties borrow to fund some services.

Treasury Cabinet Secretary Henry Rotich said the conference was aimed at seeking ways of unlocking mechanisms that counties would use to enhancing revenue collection.

"Counties collectively are collecting Sh30B annually; this can increase with accountability to ensure that funds are used well," Rotich said.

Kakamega Governor Wycliffe Oparanya said the formation of regional economic blocks would help in ironing out key issues in revenue collection.

"Some of the issues being looked at in these blocks include having a single taxation for commodities that are inter-traded between the counties," he said.

IMF Resident Representative Armando Morales Said development partners were committed to ensuring the successful implementation of devolution in the country.

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