Siaya county’s revenue collection target for the next financial year has been set at Sh1 billion, Governor James Orengo has announced.
Orengo was however quick to note that the Commission on Revenue Allocation (CRA) believes the county’s Own Source Revenue could hit Sh2 billion.
Speaking in Nairobi at the weekend during a validation forum of the County Integrated Development Plan 2023/2027, the governor said his plan to transform Siaya will be difficult unless there are significant improvements in OSR.
According to Siaya’s Medium Term Fiscal Strategy Paper 2022/2023, OSR is estimated at Sh500 million.
In his address, Orengo said agriculture will be key in the county’s transformative agenda.
“We have earmarked rice, cotton and soya beans. We will be processing the crops as well,” he said.
Orengo appealed to the national government to release allocations due to counties in time to enable the devolved units to implement their plans smoothly.
“As we speak, the government is behind schedule by three months. Even if they release the money now, it will be impossible to spend it in two months,” he stated.
Counties collect revenues from rates, single business permits, parking fees, building permits, and fees from billboards and advertisements.
County governments impose the rates and taxes through the Finance Act.
A report by Commission on Revenue Allocation released last year in October said county governments have the potential to collect up to Sh216 billion in revenue from their key revenue streams compared to the present Sh31 billion annually.
The report showed that all 47 county governments can generate nearly seven times more than they currently realize in OSR, which could finance a significant portion of their annual budgets.
