Counties must reform revenue systems to raise OSR collection

Kiambu Governor Kimani Wamatangi flanked by MCA's addresses journalists at the County Headquarters of green leaf tea fraud by tea factories in the county on February 8, 2024. [George Njunge/Standard]

As Kenya continues to deepen its devolution journey, the realisation of development at the grassroots and improved service delivery depends significantly on how counties manage and mobilise their financial resources. While the equitable share from the national government remains vital, long-term sustainability and autonomy of counties hinge on the strengthening of Own Source Revenue (OSR).

The reality is that an overreliance on national disbursements, often subject to delays, leaves counties exposed to financial uncertainty. Delays in the release of funds from the National Treasury disrupt critical projects, affect staff remuneration and cause accumulation of pending bills.