Kiambu Senator Kimani Wamatangi has urged counties to up their game in raising revenue and stick to development plans to minimise wastage of public funds.

He warned devolved units against overreliance on the equitable share and asked governors to eliminate wastage of resources through unnecessary expenditure under the recurring budget vote, which has been gobbling almost the entire allocation from the National government.

In an interview with People Daily yesterday, Wamatangi said county chiefs should think outside the box so they can generate more money for development.

He warned that over dependence  on the Exchequer could delay gains of devolution since most of the money is spent on recurring budget, which includes wage bills and cost of running the counties, leaving very little for development.

Eliminate theft

 “There are many avenues through which county governments can increase their revenue such as reviving dead industries and offering incentives that can attract more investors,” he said.

The lawmaker cited punitive levies, mostly imposed on small-scale traders and farmers as one of the factors hurting investment.

“This will help them get more resources which if used prudently, will help in fast-tracking the realisation of devolution,” he said.

Wamatangi added that the regional governments should enhance their revenue collection systems to eliminate theft.

“We must ensure public funds are spent appropriately and governors must be accountable. Those who embezzle funds must be prosecuted otherwise devolution is bound to fail,” he said. 

Analysis on county budgets show that other than Nairobi and Mombasa, which plan to generate Sh17.3 billion and Sh3.5 billion revenue, respectively, in the 2019/20 financial year, other counties  project to collect Sh3 billion to as low as Sh144 million, a figure which they hardly realise.

Kiambu plans to raise Sh2.967 million, Kajiado (Sh1.59 billion),  and Kakamega Sh1.15 million. 

Many counties have not been reaching their targets because of failed systems or theft, denying them the chance to get more cash under the fiscal responsibility parameter, which rewards counties that maintain financial discipline such as meeting revenue targets.

During the last financial year, according to the Commission on Revenue Allocation, 18 counties shared the Sh6.3 billion under the fiscal responsibility parameter, with Lamu being the major beneficiary with a Sh1.2 billion allocation. 

Other counties that will benefit from the kitty are Mombasa, Machakos, Samburu, Kericho, Marsabit, Embu, Kisumu, Baringo, Makueni, Meru, Lamu, Bomet, Kilifi, Turkana, Siaya, Nyandarua, Bungoma and Nandi.

Pay staff

Wamatangi, who is a member of the County Public Accounts Committee, said overreliance on the Exchequer was detrimental to devolution as delays in to release funds ground operations as happened this week. 

Following a stalemate over the Division of Revenue Bill, counties have been facing a cash crisis with most being unable to pay staff. However, the government moved to resolve the crisis by agreeing to release half of last year’s allocation.