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WAIKENDA: To enhance devolution, counties must grow own revenues

All counties have specific local resources that can be harnessed to ensure that more revenues are collected.

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by Josephine Mayuya

Opinion16 May 2023 - 01:00
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In Summary


  • It is no secret that Kenyans have put all their hopes and eggs in one basket called Devolution.
  • As a consequence, it is imperative that it not only succeeds but does so spectacularly in a way that benefits each and every Kenyan.

A poor Fisherman, who lived on the fish he caught, had bad luck one day and caught nothing but a very small fry.

 

The Fisherman was about to put it in his basket when the little Fish said: “Please spare me, Mr. Fisherman! I am so small it is not worthwhile to carry me home. When I am bigger, I shall make you a much better meal.

But the Fisherman quickly put the fish into his basket. “How foolish I should be,he said, “to throw you back. However small you may be, you are better than nothing at all

The moral of this story is that a small gain is worth more than a large promise.

The Commission on Revenue Allocation recently pleaded with county governments to improve their own revenue sources to meet their needs as well as develop marginalised areas.

As it stands, all 47 counties are said to be only collecting 16 per cent of their own-source revenue potential, resulting in a strain on service delivery.

Counties in Kenya have been collecting their own revenues since the implementation of devolution in 2013. This has been a major milestone in the country's history, as it has given counties more control over their own finances.

However, there have been some challenges in collecting own revenues, and there is still room for improvement.

One of the main challenges has been the lack of capacity in county governments. Many counties have not had the necessary systems and personnel in place to collect revenues effectively.

This has led to low collection rates. Another challenge has been the lack of cooperation from national government agencies. Some national government agencies have been reluctant to share revenue with counties, which has made it difficult for counties to collect their own revenues.

Despite these challenges, there have been some successes in collecting own revenues. Some counties have been able to collect significant amounts of revenue, which has allowed them to invest in development projects. For example, Nairobi county has been able to collect billions of shillings in revenue, which has been used to build roads, schools and hospitals.

However, there are still some challenges that need to be addressed in order to improve the collection of own revenues.

One way to address the challenges of collecting own revenues is to strengthen the capacity of county governments. This can be done by providing training to county officials and by investing in systems and infrastructure.

Another way to address the challenges is to improve cooperation between county governments and national government agencies. This can be done by signing agreements and establishing joint working groups.

With the necessary support, counties can overcome the challenges of collecting their own revenues and continue to invest in development projects. This will benefit the people of Kenya, as it will lead to improved services and infrastructure.

It is no secret that Kenyans have put all their hopes and eggs in one basket called Devolution. As a consequence, it is imperative that it not only succeeds but does so spectacularly in a way that benefits each and every Kenyan.

Counties must therefore come up with strategies on how to ensure devolution pays a just dividend to its Kenyan shareholder. Elective and administrative borders should not be a hindrance to collaboration and cooperation between counties.

Counties should look at their strengths and see how best to use their local resources to create a competitive advantage that helps enhance collaboration between the counties. This would ensure that locals get markets for their products when they need them.

All counties have specific local resources that can be harnessed to ensure that more revenues are collected. As the national government continues to get international deals for Kenyan products, counties can take advantage and benefit from these deals by positioning themselves with proper value propositions.

For instance, tea-growing counties can take advantage of the new deal that President William Ruto signed in The Netherlands. This would help raise the revenues in the counties and these can be utilised for other services within the devolved units.

Each county must talk to its people and ensure that it comes up with clear strategies on raising own revenues to ensure that devolution remains sustainable.

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