Counties asked to seek innovative ways to increase revenue, reduce dependency on Treasury
County governments have been asked to look for innovative ways to increase their revenue in order to reduce dependency on the National Treasury.
Counties are facing a major cash crunch that could bring well laid down plans and activities to a grinding halt.
The government is yet to remit Sh52 billion needed for recurrent expenditure, despite facing a myriad of challenges including a biting drought.
Counties such as Homa Bay and Kisumu are moving to remedy the biting cash crunch situation by streamlining revenue streams.
These counties have sought the council of former Laikipia county governor Nderitu Murithii on ways to improve revenue collection.
Lakipia under his leadership was able to increase its revenue from Sh460 million to Sh1 billion. This he says they were able to achieve through instituting tough reforms in the county public service, sealing areas of revenue leaks and using technology to track monthly revenue collection across all department of the county government.
Lack of funds have stalled my servers including medical in county hospitals, in the past medics have threatened to down their tools due to delayed salaries and allowances and poor working conditions, i.e. Kisii, Machakos, Mombasa and even Nairobi.
Kisumu county is intending to issue infrastructure bonds, just like laikipia did to generate income. According to the former governor the county must show how they will generate revenue from the funded projects to help the county pay back the bond.
The county also embarked on leasing vehicles and equipment used for infrastructural development to reduce cost of production and still achieving its development agenda.
As side from such innovative ideas, Counties now have to undertake austerity measures to keep them a float, continue to delivering services and reduce the ballooning pending bills.
On Friday the council of governor’s chairperson kirinyaga governor Anne Waiguru after a crisis meeting said that the delays in disbursement of funds and huge arrears have the potential to delay the pay of thousands of county workers pay where by some have not been paid for two months and this is a recipe for go slows and paralysis in county services.
