Northeastern counties have emerged as the strongest performers in county own-source revenue collection, outperforming more economically endowed regions in meeting their targets.
The latest
County Governments Budget Implementation Review Report by the Controller of
Budget shows counties in the former Northeastern province collectively posted
the highest average performance in meeting their own-source revenue targets
during the first nine months of the 2025-26 financial year.
Controller
of Budget Margaret Nyakang’o’s report shows that counties collectively
generated Sh53.88 billion in own-source revenue between July 2025 and March
2026. This represents 54 per cent of the annual target of Sh100.13 billion.
Nine counties exceeded 75 per cent of their annual targets, 24 achieved between
50 and 74 per cent, while 14 remained below 49 per cent.
When
grouped into the former eight provinces, Northeastern emerged as the
best-performing region with an average target achievement of about 73 per cent.
Long
portrayed as one of the country's most fiscally dependent regions, Northeastern
beat Central region, which attained 70 per cent, Western at about 65 per cent,
Eastern at 63 per cent, Rift Valley at 60 per cent, Coast at 59 per cent,
Nairobi at 51 per cent and Nyanza at 44 per cent.
The
regional ranking is largely driven by Garissa, which surpassed its annual
target by recording 109 per cent performance, making it one of only three
counties nationally to exceed its full-year target before the close of the
financial year. Wajir also posted a respectable performance, while Mandera
remained among the weaker performers, pulling down the regional average.
Nationally,
Samburu topped the country after collecting 138 per cent of its annual target,
followed by Garissa at 109 per cent and Kirinyaga at 102 per cent. West Pokot
and Trans Nzoia completed the top five performers with 84 per cent and 81 per
cent respectively.
In recent
years, critics of the equitable share formula have frequently questioned
whether counties in historically marginalised regions are generating enough
local revenue to justify continued increases in national allocations.
Although
the CoB report does not address those political claims, its revenue performance
data shows Northeastern counties have performed better than several
traditionally stronger economic regions.
The report
attributes county own-source revenue to collections from ordinary revenue
streams as well as the Facility Improvement Fund and Appropriation-in-Aid.
Counties
are increasingly relying on health facility collections to boost locally
generated income.
It also
notes that counties generated Sh53.88 billion against an annual target of
Sh100.13 billion during the review period.
In terms of
amounts collected, an analysis of the CoB report shows counties in the Rift
Valley generated the highest amount at about Sh12.13 billion, accounting for
about 22.5 per cent of all locally generated county revenue.
The
region's collections were driven by Narok (Sh3.44 billion), Nakuru (Sh2.82
billion) and Uasin Gishu (Sh1.06 billion).
Nairobi
followed closely after raising Sh10.79 billion, making it the single largest
contributor to county own-source revenue nationally, despite achieving only
about half of its annual target because of its ambitious projections.
Counties in
Central collectively raised Sh7.69 billion, with Kiambu accounting for just
over half of the regional total after collecting Sh3.9 billion. Nyeri (Sh1.29
billion), Murang'a (Sh1.16 billion) and Kirinyaga (Sh780 million) also made
significant contributions.
Eastern
region generated a combined Sh7.05 billion, buoyed by Machakos, which collected
Sh2.62 billion, followed by Meru (Sh1.17 billion), Makueni (Sh1.12 billion) and
Embu (Sh855 million).
Coast
counties collectively mobilised Sh6.4 billion, largely on the back of Mombasa's
Sh3.91 billion, while Kilifi contributed Sh1.22 billion. Kwale, Taita Taveta,
Lamu and Tana River accounted for the remaining collections.
Counties in
Nyanza raised a combined Sh4.88 billion, led by Kisii (Sh1.16 billion), Kisumu
(Sh1.09 billion) and Homa Bay (Sh1.02 billion), while Migori, Siaya and Nyamira
posted comparatively lower collections.
Western
collected about Sh3.8 billion, with Kakamega (Sh1.24 billion) and Bungoma
(Sh1.22 billion) contributing nearly two-thirds of the regional total, followed
by Busia, Trans Nzoia and Vihiga.
Although
counties in Northeastern collectively raised the lowest amount of own-source
revenue at just over Sh1 billion, the region nonetheless emerged as the
strongest performer in meeting its own revenue targets.
Garissa
collected Sh489 million, Mandera Sh275 million and Wajir Sh243 million, but
together they surpassed expectations relative to their annual revenue
projections.
Rift
Valley, despite hosting Kenya's largest geographical concentration of counties,
presented the widest disparities. The region produced both the country's best
performer, Samburu, and one of its weakest performers, Turkana.
The report
identifies underperformance in own-source revenue collection, growing
dependence on Facility Improvement Fund revenues, rising receivables, delayed
enactment of legislation governing health facility funds, low development
expenditure, high pending bills and weak compliance with financial management
requirements as among the key constraints affecting county finances. As
at March 31, counties had outstanding receivables amounting to Sh166.14
billion and trade payables of Sh156.84 billion, factors the Controller says
continue to constrain liquidity and budget implementation.
The
Controller recommends that counties strengthen own-source revenue collection,
intensify recovery of outstanding receivables, reduce dependence on health
facility funds, improve compliance with public finance laws and prioritise
development spending to improve service delivery and reduce reliance on
national transfers.
