ECONOMIC IMPLICATIONS

Nakuru projects Sh800m drop in revenue collection

Kinyanjui said Nakuru will be compelled to adjust budgets to reflect the financial realities.

In Summary

• Governor Lee Kinyanjui on Thursday said the impact of the Covid-19 in counties continued to be felt with reduced economic activities and dwindling revenue sources.

• He said the month of March is very critical to county revenues as most organisations pay their licenses in the first quarter of the year.

Governor Lee Kinyanjui addresses the media at his office on Thursday, April 9, 2020.
Governor Lee Kinyanjui addresses the media at his office on Thursday, April 9, 2020.
Image: LOISE MACHARIA

Nakuru County will incur a Sh800 million drop in revenue collection due to the effects of Covid-19 on the economy.

Governor Lee Kinyanjui on Thursday said the impact of the Covid-19 in counties continued to be felt with reduced economic activities and dwindling revenue sources.

He said the month of March is very critical to county revenues as most organisations pay their licenses in the first quarter of the year.

 

The Governor said Nakuru was the home of Small and Medium Enterprises and with many of them closing down while others record a decline in returns, payment of licenses might be delayed or reduced.

"Many businesses are struggling to keep afloat and hence delays in payment of their obligations," he said.

He observed that the county has an obligation to understand the plight of the business concerns adding that Nakuru will be compelled to adjust budgets to reflect the financial realities.

He noted that drop in revenue will reflect in reduced implementation of budgeted projects in counties.

Kinyanjui appealed to financially-able businesses to honour their obligations in order to cushion vulnerable segments of the society because counties have to operate and offer essential services.

"Rising health costs and protection of vulnerable groups will bear a heavy load on counties and therefore we must all act together to overcome the situation," he said.

Meanwhile, Nakuru County Emergency Response Team is conducting a baseline survey to identify areas deserving urgent humanitarian support due to the effects of Covid-19.

 

The governor said the survey will be critical to ensure that support will be taken where it is most needed, without duplication.

He added that his team was working with the national government for synergy.

Kinyanjui said the Nakuru County Assembly passed the necessary approval to allow a comprehensive support program for the vulnerable groups.

"The support will be expedited to alleviate suffering by the masses who include thousands of flower farm workers in Naivasha, Suburbia and Njoro," he said.

Kinyanjui said his administration will set up ward committees tasked with monitoring the humanitarian support program at the grassroots level.

"We are doing a survey using the local administration to identify the vulnerable groups that will benefit from this food program," he said.

A fortnight ago, the county government set aside Sh250 million for food relief for the needy families who include workers who may have lost their jobs due to the effects of the virus.

The county boss said the county supported about 10 water projects at the community level and will continue providing water for areas that have a shortage.

Salonists and Barbers will be trained to ensure they adhere to the guidelines announced by the Ministry of Health on Wednesday.

On inter-county movement restrictions, the Governor said Nakuru shall partner with the security agencies to patrol entry points and ensure only vetted categories are allowed.

"This will be done jointly with neighbouring counties of Narok and Nyandarua," he said.


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