𝐒𝐔𝐒𝐓𝐀𝐈𝐍𝐀𝐁𝐋𝐄 𝐅𝐈𝐍𝐀𝐍𝐂𝐈𝐍𝐆 𝐀𝐍𝐃 𝐑𝐄𝐕𝐄𝐍𝐔𝐄 𝐈𝐍𝐍𝐎𝐕𝐀𝐓𝐈𝐎𝐍 𝐊𝐄𝐘 𝐓𝐎 𝐁𝐎𝐎𝐒𝐓𝐈𝐍𝐆 𝐂𝐎𝐔𝐍𝐓𝐈𝐄𝐒’ 𝐎𝐖𝐍 𝐒𝐎𝐔𝐑𝐂𝐄 𝐑𝐄𝐕𝐄𝐍𝐔𝐄

The Principal Secretary for the State Department for Devolution, Michael Loikenu Lenasalon, today delivered a keynote address at the Third Annual Own Source Revenue (OSR) Growth Conference convened by Ecocapp Capital Ltd. 
The conference brought together key stakeholders from the National and County Governments, the private sector, and development partners to deliberate on strategies for enhancing county revenue generation.
In his remarks, PS Lenasalon commended the conference for its critical role in shaping the trajectory of fiscal decentralization in Kenya. He noted that the theme, “Catalyzing Subnational Growth through Sustainable Financing and Revenue Innovation,” signaled a strategic shift from merely fixing systems to unlocking growth opportunities within counties.
The PS highlighted significant progress made by the State Department for Devolution through the Second Kenya Devolution Support Program (KDSP II), particularly in strengthening county revenue systems. These efforts include the development and rollout of Revenue Mapping Guidelines, as well as the introduction of Revenue Forecasting Tools aimed at enhancing efficiency and predictability in revenue collection.
“The results of these interventions are already evident. Many counties are recording notable growth in their own source revenue, with some surpassing their annual targets. This progress is translating into improved service delivery, strengthened infrastructure, and enhanced livelihoods for citizens,” said the PS.
While acknowledging these gains, PS Lenasalon emphasized that substantial opportunities for further improvement remain. He called on stakeholders to intensify their efforts in advancing the sustainable revenue innovation agenda and underscored the importance of strengthening intergovernmental collaboration to enhance service delivery and promote accountability.
The PS also urged counties to explore alternative subnational financing mechanisms. Among the proposals he outlined were reimbursable obligations, allowing counties to engage development partners without accruing debt, issuance of county infrastructure bonds and the restructuring of own source revenue as a service model to leverage private sector capital and expertise.
He observed that strengthening own source revenue enhances county autonomy, resilience, and accountability, ultimately making devolved units more responsive to the needs of their citizens.
PS Lenasalon was accompanied by his Technical Advisor, Margaret Osili, and the Chairman of the Intergovernmental Relations Technical Committee, Kithinji Kiragu.