HARNESSING DOMESTIC REVENUE FOR SUSTAINABLE COUNTY DEVELOPMENT 3RD TAX SUMMIT BY BENSON KORONGO, OGW COMMISSIONER - DTD THURSDAY,30TH NOVEMBER 2017 UNIVERSITY OF NAIROBI

GROWING ‘OWN REVENUE’ NAIROBI COUNTY NAIROBI COUNTY NAIROBI COUNTY Budget(FY 2017/18)- Kshs 35.79B Equitable Share + Grants – Kshs 16.03B(45%) Own Revenue – Kshs 19.76B(55%) 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 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 NAKURU COUNTY NAKURU COUNTY Budget(FY 2017/18)- Kshs 14.22B Equitable Share + Grants – Kshs 11.36B(80%) Own Revenue – Kshs 2.86B(20%) 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 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 MOMBASA COUNTY MOMBASA COUNTY Budget(FY 2017/18)- Kshs 10.82B Equitable Share + Grants – Kshs 7.04B(65%) Own Revenue – Kshs 3.78B(35%) 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 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 KAKAMEGA COUNTY 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 Health – 37.15% Business permits – 16.70% Cess – 13.09% Bus Parks – 6.21% Land Rates – 5.58% Other Incomes – 21.27% 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; Opportunity Way Forward Unexploited revenue sources Re-think expectations from potential revenue streams Use of ICT in revenue collection Re-model mode of collection to fully embrace technology Good infrastructure enhancing business opportunity Re-build infrastructure(Access, Communication, Health) to spur business activity NB: The “Re-” is technology-driven, collaboratively implemented and jointly a ‘Win-Win’ This is sustainable

WIN- WIN SOLUTION Capacity Building 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:

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