NAIROBI, Kenya, Feb 8 — Members of the County Public Accounts and Investments Committee (CPAIC) have cautioned Governors against overestimating their own-source revenue collection due to perennial failure to meet set targets.
Nyandarua Senator John Methu said overestimation is what is leading to high pending bills at the counties.
“This over estimating is clearly the root cause of the high pending bills being experienced in all our counties and the more things change, the more they remain the same,” said Methu.
His sentiments were backed by Busia and Homabay counterparts Okiya Omtata and Moses Kajwang.
“What criteria do you use when you are making your estimation? What informs it? Are they informed estimates or blind estimates?” Omtatah posed.
“Is there a scientific method that is used so that if that target is below the estimated own source revenue?” he asked.
His sentiments were backed by Busia and Homabay counterparts Okiya Omtata and Moses Kajwang.
“What criteria do you use when you are making your estimation? What informs it? Are they informed estimates or blind estimates?” Omtatah posed.
Scientific basis for revenue targets
He wondered whether the targets are guided by science.
“Is there a scientific method that is used so that if that target is below the estimated own source revenue?” Omtatah said.
Their sentiments were triggered by the Auditor General’s Report on Nyeri County where a Sh1 billion target for 2019-2020 financial year was missed.
Nyeri ended up collecting Sh664.5 million shillings with a situation replicated in all other counties which missed set targets.
“The statement of receipts and payments reflects county own generated receipts of Sh656,628,153 for the year ended 30 June 2020, which is at variance with an amount of Sh664,859,880 indicated in the Annual Report of the Controller of Budget. The difference of Sh8,231,727 has not been reconciled,” a part of the report read.
“Further, revenue receipts and bank statements for Karatina Hospital were not provided for audit verification,” the report outlined.
Unreconciled figures
The audit noted “the accuracy and completeness of the county own generated receipts of Sh656,628,153 for the year ended 30 June 2020 could not be confirmed.”
In his defense, Nyeri Governor Mutahi Kahiga who appeared before Senator Kajwang-led committee said the estimates are given by Controller of Budget (COB).
“Until the position of the governor becomes appointive it will be difficult to achieve these targets,” he argued.
“These are targets put by the controller of budget which in my opinion are impossible to achieve because governors have to balance between the political interests of their people and development,” Kahiga went on to state.
He argued that they are untenable as Governors have to “balance between politics and development.”
In the 2022-2023 financial year, Kahiga pointed out that the COB put his county’s own source revenue target at Sh2.6 billion which he termed as very high and committed to collect at least Sh700 million.
