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Join the discussion on harnessing domestic revenue for sustainable county development. Learn strategies to improve revenue collection and address challenges faced by Nairobi, Nakuru, Mombasa, and Kakamega Counties. The summit offers insights on structured revenue streams, manual collections, system integration, and tackling revenue gaps.
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HARNESSING DOMESTIC REVENUE FOR SUSTAINABLE COUNTY DEVELOPMENT3RD TAX SUMMITBYBENSON KORONGO, OGWCOMMISSIONER - DTDTHURSDAY,30TH NOVEMBER 2017UNIVERSITY OF NAIROBI
GROWING ‘OWN REVENUE’ NAIROBI COUNTY Parking - 18.10% Rates – 28.11% Business Permits – 18.40% Building Permits – 8.70% Billboards &Adverts – 6.12% Other Incomes – 20.58% NAIROBI COUNTY Budget(FY 2017/18)- Kshs 35.79B Equitable Share + Grants – Kshs 16.03B(45%) Own Revenue – Kshs 19.76B(55%) • NAIROBI COUNTY • Challenges • Structured vs Unstructured revenue streams • Manual collections • Systems without integration • NAIROBI COUNTY • Gap as Per COB • 2015/16 - 3.58B, 23% • 2016/17 – 8.64B, 44%
GROWING ‘OWN REVENUE’ NAKURU COUNTY Property Tax – 26.26% Business permits – 17.79% Advertising – 12.20% Parking Fees – 11.22% Cess – 5.33% Other Incomes – 27.20% NAKURU COUNTY Budget(FY 2017/18)- Kshs 14.22B Equitable Share + Grants – Kshs 11.36B(80%) Own Revenue – Kshs 2.86B(20%) • NAKURU COUNTY • Challenges • Structured vs Unstructured revenue streams • Manual collections • Systems without integration • NAKURU COUNTY • Gap as Per COB • 2016/17 – 1.05B, 40%
GROWING ‘OWN REVENUE’ MOMBASA COUNTY Land rates and related fees – 22.84% Clinic cost sharing charges & other services – 14.78% Road maintenance fees – 13.00% Sand, Gravel, and Ballast Extraction Fees – 12.91% Business permit fees – 11.83% Other Incomes – 24.64% MOMBASA COUNTY Budget(FY 2017/18)- Kshs 10.82B Equitable Share + Grants – Kshs 7.04B(65%) Own Revenue – Kshs 3.78B(35%) • MOMBASA COUNTY • Challenges • Structured vs Unstructured revenue streams • Manual collections • Systems without integration • MOMBASA COUNTY • Gap as Per COB • 2015/16 – 1.11B, 27% • 2016/17 – 2.12B, 40%
GROWING ‘OWN REVENUE’ KAKAMEGA COUNTY Health – 37.15% Business permits – 16.70% Cess – 13.09% Bus Parks – 6.21% Land Rates – 5.58% Other Incomes – 21.27% KAKAMEGA COUNTY Budget(FY 2017/18)- Kshs 13.56B Equitable Share + Grants+ Bal. B/F – Kshs 12.55B(65%) Own Revenue – Kshs 1.01B(35%) • KAKAMEGA COUNTY • Challenges • Structured vs Unstructured revenue streams • Manual collections • Systems without integration • KAKAMEGA COUNTY • Gap as Per COB • 2015/16 - 0.50B, 50% • 2016/17 – 0.45B, 50%
RE-THINK, RE-MODEL, RE-BUILD The County Revenue Baseline Study 2015 listed the top 3 opportunities for tapping into the potential of County Revenues as; NB: The “Re-” is technology-driven, collaboratively implemented and jointly a ‘Win-Win’ This is sustainable
WIN- WIN SOLUTION Leveraging on Each Other’s Strengths • KRA’s expertise developed over time • County networks • Information exchange • Technology platforms NB: Expanded Tax base and higher revenue yields are resultant. • REVENUE MOBILIZATION PROGRAMME • TOPICS: • Revenue stream evaluation • Determining revenue targets • Segmentation of payers Capacity Building • Training of revenue staff in the county • Establish KRA presence(facilitative) in the county premises
WIN - WIN SOLUTION Smart Enforcement • Involve Technology • Ensure compliance prior to engagement of supplier • Review scope of Tax Compliance Certificate to include verifying compliance with County revenues?
SUPPORTING LEGISLATION The Constitution of Kenya Chapter 12 ,Article 209 (3), Power to Impose Taxes and Charges The Public Finance Management Act 2012: