Counties achieved a historic own source revenue (OSR) collection since the start of devolution, amassing Sh58.95 billion in the 2023/24 financial year largely shored up by the health sector.
An analysis of the audit report by Controller of Budget Margaret Nyakang’o reveals that a substantial portion of this revenue is bolstered by the Facility Improvement Fund (FIF), which generated through user fees and other payments at healthcare facilities.
The FIF allows counties to reinvest funds into their healthcare networks, directly benefiting the facilities and the communities they serve.
The boost in revenue is also attributable to a concerted push for improved health services across counties with the demand for enhanced healthcare infrastructure and services increasing user fees and payments, contributing to the revenue growth.
Also, advancements in efficiency and automation within county revenue collection systems have played a crucial role. Upgrade of payment processes and better collections automation have minimised leakages and improved accuracy of revenue capture.
These technological upgrades have streamlined operations, reduced administrative burdens, and enhanced transparency, making it easier for counties to manage and utilise their resources effectively.
Financial Thinktank Bajeti Hub partly attributed the increase to the passing of The Facilities Improvement Finance Act, 2023 which was set up to help public health facilities use any money that they make to improve their status.
“The increase in revenue could also be linked to a rise in out-of-pocket expenditure on health care by residents in the rollout of the Universal Health Coverage. FIF makes up a huge percent of OSR in the counties achieving the fastest OSR growth. “Also, a substantial portion of the collected funds is earmarked exclusively for health-related matters, leaving limited resources available for other critical sectors,” explained Bajeti Hub Senior Programmes Officer John Kinuthia.
According to Dr Nyakang’o’s report covering July 2023 to June 2024, the Sh58.95 billion accounted for 72.8 per cent of the annual local revenue target of Sh80.94 billion.
It represented an increase of 55.9 per cent compared to the Sh37.81 billion reported in FY 2022/23.
Counties that outperformed their annual revenue targets included Turkana at 241.2 per cent, Vihiga at 136.3 per cent, Kirinyaga 118.4 per cent, Lamu at 116.2 per cent, Nandi at 113 per cent, Wajir at 110 per cent, Garissa 108.2 per cent, Nyeri at 106.1 per cent, Samburu at 104.1 per cent, and Murang’a at 100.2 per cent.
Counties that recorded the lowest performance of their own source revenue included Nyandarua at 42.1 per cent, Machakos at 46.5 per cent, Mandera at 50.8 per cent, Nyamira at 53.8 per cent, Bungoma at 55.8 per cent, Kajiado at 56.1 per cent, and Busia at 56.9 per cent of annual targets.
Top OSR collections were Nairobi (Sh12.5billion), Mombasa (Sh5.5 billion), Narok (Sh4.7 billion), Kiambu (Sh4.5 billion), Nakuru (Sh3.3 billion), Machakos (Sh1.5 billion), Kisumu (Sh1.44 billion), Uasin Gishu (Sh1.42 billion), Nyeri (Sh1.4 billion), Kakamega (Sh1,3 billion) and Kilifi (Sh1.2 billion).
Common sense approach.
each counties should Buy a buldozer hire locals to build roads manually inch by inch.
Use real stones not murram that gets washed away overnight.
Kang'ata, the first-term governor, received a 68 per cent rating following Trans Nzoia's George Natembeya who got 64 per cent, Homa Bay's Gladys Wanga (61 per cent), and Kisumu's Anyang' Nyong'o (59 per cent).
Mutula Kilonzo (Makueni) and Wisley Rotich (Elgeyo-Marakwet) tied with a 57 per cent rating and rounded up the top six governors.
?ref_src=twsrc%5Etfw">April 20, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>Muranga is looking for investments from United States of America.
— Irungu Kang'ata (@HonKangata) April 20, 2025
Kenyan diaspora are encouraged to consider :
1. Attending 1st Muranga Investment Conference 13th/14th June 2025 Thika Greens ,Muranga.
2. Investing- eg Healthcare sector Nursing homes.
More info ,attend- pic.twitter.com/1jjo6DFEMC