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Isiolo Among Twelve Top Revenue-Generating Counties in Kenya

Despite economic challenges at the national level, twelve Kenyan counties have emerged as trailblazers in revenue generation during the first three quarters of the 2023/24 fiscal year. Their remarkable performance not only showcases financial resilience but also sets an inspiring example for other regions.

Nairobi leads the pack, collecting KSh 3.6 billion—up from KSh 2.6 billion during the same period last year. Its strategic position as a business hub and administrative center contributes significantly to its revenue stream.

Narok, known for its vibrant tourism industry, generated KSh 2.93 billion, bolstered by the Maasai Mara National Reserve, which attracts both local and international visitors.

Kiambu County, with its thriving agricultural sector and proximity to Nairobi, contributed KSh 1.64 billion. Mombasa, as a coastal county, relied on its port activities and tourism to reach KSh 1.61 billion in revenue collection.

Other notable performers include Uasin Gishu, which collected Sh1.09 billion, achieving 92.5 percent of its annual OSR target. This remarkable performance is attributed to robust local agricultural activities and efficient revenue collection strategies.

Samburu generated Sh232.3 million, achieving 90.7 percent of its annual OSR target, driven by its thriving livestock sector and tourism.

Isiolo collected Sh237.6 million, equivalent to 87.6 percent of its annual target, benefiting from a growing market for livestock products and strategic investments in infrastructure. Kirinyaga generated Sh472.8 million, reaching 86 percent of its annual target, with significant contributions from tea and horticulture.

Turkana, known for its oil reserves and potential, collected substantial revenues through enhanced local governance and resource management. Nandi leveraged its fertile land and agricultural activities, particularly in tea and dairy farming, to achieve high revenue collection.

Vihiga collected a substantial portion of its OSR target through improved local revenue collection mechanisms. Meru, with a strong agricultural base, particularly in miraa (khat) cultivation, managed to achieve high revenue figures.

Collectively, these twelve counties achieved 80 percent of their annual OSR targets. Their success is particularly notable given that overall OSR performance across all 47 counties fell short, with a deficit of KSh 19.2 billion.

Counties like Kericho, Nyandarua, Machakos, and Lamu need to address their revenue gaps. The Controller of Budget (CoB) recommends prudent budget management for counties below the 50 percent threshold to prevent accumulating pending bills in the next financial year.

The assent of the Division of Revenue Bill 2023 resulted in an increased County Equitable Share, providing counties with KSh 15.4 billion more. This boost is crucial for their financial stability, as they now receive KSh 385.4 billion in the 2023/2024 Financial Year.

These counties exemplify effective financial strategies and resilience, proving that local governments can thrive even in challenging times.

Their success story encourages other regions to explore innovative revenue streams and prioritize financial self-sufficiency. The shift towards increased local revenue generation is essential for sustainable development and reducing dependency on national transfers.

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