Despite the odds, county revenue collection improves
Governors Gladys Wanga (Homa Bay), Muthomi Njuki (Tharaka Nithi), Mutahi Kahiga (Nyeri) and Anne Waiguru (Kirinyaga) during a press conference held by the Council of Governors in Nairobi on March 21, 2025. Ten counties achieve remarkable revenue generation.
Ten counties, led by Nairobi, defied the odds, including those posed by the 2024 Gen Z protests, to achieve remarkable revenue generation between June 2024 and March 2025.
Following last year's June protests, activities, including businesses in towns across the country, were disrupted. Nairobi was the worst affected, becoming the epicentre of the protests.
Between April and June 2024, the national government's passage of a controversial Finance Bill sparked mass demonstrations that eventually turned deadly.
According to the County Governments Budget Implementation Review Report by the Controller of Budget (May 2025), overall, counties collected an additional Sh4 billion in the first nine months of the 2024/2025 financial year compared to the same period last year.
The 10 counties collected Sh30 billion out of the Sh45.91 billion collected by all 47 devolved units.
Nairobi led with Sh9.9 billion, followed by Narok (Sh4.9 billion) and Kiambu (Sh3.3 billion). Mombasa and Nakuru also featured prominently, collecting Sh3.2 billion and Sh2.5 billion respectively.
The other counties were Kisumu (Sh1.3 billion), Kakamega (Sh1.2 billion), Machakos (Sh1.1 billion), Homa Bay (Sh1 billion) and Kilifi (Sh913 million).
“Collectively, county governments generated Sh45.91 billion from their own revenue sources during the period, representing 53 percent of the annual target of Sh87.11 billion,” Controller of Budget Margaret Nyakang’o said in a report.
“The revenue generated in the nine months reflects an 11 percent increase compared to the Sh41.40 billion collected during a similar period in the 2023/2024 financial year.”
Tana River, Garissa, Narok, Samburu, Kirinyaga and Elgeyo Marakwet achieved higher percentages of their annual local revenue collection targets at 172 per cent, 104 percent, 99 per cent, 85 per cent, 78 per cent, and 74 per cent respectively.
“Five counties — Tana River, Garissa, Narok, Samburu, and Kirinyaga — exceeded 75 percent of their annual targets. Tana River County’s exceptional performance during the review period is attributed to revenue from significant gypsum extraction. Other strong performers like Narok and Garissa collected most of their own-source revenue from tourism and local health facilities,” the report added.
However, some counties recorded own-source revenue performance below 50 per cent, including Nyamira (Sh399.4 million), Kilifi (Sh913.7 million), Busia (Sh299.1 million), and Siaya (Sh476.2 million). Others were Embu (Sh569.7 million), Nandi (Sh368.2 million), Kajiado (Sh674.5 million), Kwale (Sh271 million), Bomet (Sh182.6 million), Taita Taveta (Sh317.7 million) and Bungoma (Sh794.1 million).
Ms Nyakang’o recommended implementing strategies to bolster revenue generation.
“Counties should also consider revising their OSR (Own Source Revenue) projections for the next period to align with realistic and achievable targets, which can be attained by using an objective revenue forecasting model,” she advised.