Kenya’s Treasury has cut its tax revenue target for the next financial year by Sh334 billion and reduced spending, reflecting a reluctance to raise taxes amid public discontent.
The revised target is Sh2.96 trillion, down from Sh3.294 trillion following protests that led to the withdrawal of the Finance Bill 2024, which had proposed tax increases.
Counties may wait longer to get their shareable revenue, with the Senate insisting that they should get Sh 400 billion while the National Treasury sticks with Sh 380 billion.
The Kenya Revenue Authority grew its revenue from KSh 1.1 trillion in the 2014/15 financial year to KSh 2.2 trillion in 2022/23. 2021/22 saw the largest growth, with a 21.7% increase. Over nine years, tax revenue grew by an average of 9.4%.
The dramatic revenue boosts in 14 counties, notably Homa Bay’s 716.03% rise, signal a revolutionary shift in Kenya’s devolution landscape.
Governor Gladys Wanga’s innovative strategies, including the establishment of a revenue board, system automation, and regular strategic meetings, have crafted a success blueprint.
Similarly, Garissa’s revenue leapt to Sh248.96 million, while Narok’s soared to Sh4.75 billion. These achievements reveal the profound effects of imaginative fiscal strategies and transparent leadership.
The impressive advancements across these counties chart a dynamic course for revenue optimisation and regional economic growth, setting a bold new standard for effective local governance.
Narok Governor Patrick Ole Ntutu grew the county’s own revenue from Sh 1.33Bn to Sh 4.75Bn in 2 years. Gladys Wanga from Homa Bay came in second.
