Counties have potential to collect Sh216m, assures agency
The Commission on Revenue Allocation (CRA) together with a World Bank team toured Uasin Gishu County to take the county administration through all revenue streams in order to sensitise them on how they can achieve their potential own source revenue target.
Speaking to the press, during a meeting with the county executive led by Governor Dr. Jonathan Bii (pictured), his Deputy Eng John Barorot and all the County Executive Committee Members (CECMs), CRA Commissioner Hadija Juma, revealed that they conducted a study on the potential of own source revenue for county governments and the tax gap and came up with findings that the 47 counties have a potential of collecting up to Sh216 billion.
Revenue streams
However, in the last financial year the counties were only able to collect Sh45 billion, hence the need to take the counties through all their revenue streams and showing them how they can achieve their potential own source revenue targets.
She added that one of the commission’s mandates is to define and enhance revenue sources of both national and county governments.
“We want to appreciate the leadership of Uasin Gishu county led by Governor Bii for the good work they are doing and the interest they have shown in enhancing their revenue,” she said.
The CRA Commissioner indicated that enhancing own source revenue is one of the key ways of filling the resource gap for county governments, noting that equitable share is strained and that donor funding comes with restrictions so the real deal is own source revenue.
According to the study by CRA, it is estimated that Uasin Gishu County can collect Sh2, 774, 980,522 per year from various revenue streams which include hospital and public health services fees (21 per cent), trading licensing fees (18 per cent) Parking fees (11 per cent), property rates (nine per cent), natural resources transportation fees (6 per cent), agricultural resources transportation fees (6 per cent) and other streams (21 per cent).
– KNA
