The second Own Source Revenue (OSR) Growth Conference in Nairobi,
County Governments are urged to enhance their revenue collection in order to achieve financial autonomy and reduce reliance on national government transfers.
Speaking during the 2nd Own Source Revenue (OSR) Growth Conference in Nairobi, Principal Secretary for Devolution Teresia Mbaika emphasized the need for digital revenue collection systems, policy reforms and stronger enforcement mechanisms to unlock the Ksh 260 billion OSR potential identified by the Commission on Revenue Allocation (CRA).
Currently, counties depend on equitable share transfers for 80% of their budgets, with OSR contributing a mere 13%. However, recent improvements in county collections, where some exceeded targets in 2023/24, achieving 72.8% of a Ksh 80.94 billion target, show promise.
PS Mbaika reaffirmed President William Samoei Ruto’s commitment to strengthening devolution under the Bottom-Up Economic Transformation Agenda (BETA). She also highlighted the Second Kenya Devolution Support Programme (KDSP II), backed by the World Bank, which aims to bolster revenue forecasting and financial discipline in counties.
The conference, attended by county officials, industry leaders and development partners, focuses on practical strategies for maximizing revenue, fostering financial accountability and enhancing service delivery at the grassroots.
"A self-sufficient county is a prosperous county," PS Mbaika stated, urging all county governments to embrace revenue automation, compliance frameworks and structured forecasting models.
Stakeholders present at the OSR Conference expect that actionable resolutions from the event will pave the way for a financially independent and efficient devolved system.