Our counties can grow their own source revenue and promote growth

In the just ended summit, issues of revenue share for counties and promise to accelerate total transfer of devolved functions featured. Kenyan counties can draw lessons from the Nigerian state of Lagos which underwent massive transformation under the leadership of Governors Tinubu and Fashola. Before that, the state had an increase of 600,000 persons per year without commensurate improvements in social services like housing, water and transportation. Enter Governors Tinubu and Fashola, the state developed the “Manhattan of Africa”, consisting of 10 million square meters of land reclaimed from the sea and protected by 8.5 km seawall. Approximately 72 percent of Lagos state residents started to use government backed solid waste management systems by 2016 compared to 42 percent by 2005. Lagos state became one of the richest states in Nigeria, producing almost US dollars 90 billion a year in goods and services, making its economy bigger than most African countries. Lesson, good projects initiated by their predecessors, shouldn’t be discarded but leveraged upon.

Governor Fashola used three strategies to grow own revenues. First, he solicited and engaged the Lagos state residents to buy into the new vision through slogans like “Lagos must not spoil”, which was embraced by residents to undo the status quo. Governors should clearly communicate their vision and engage the residents to succeed. Secondly, Fashola reformed the taxation system, resulting in increases in tax revenues to US dollars 115 million per month in 2016 from US dollars 3.2 million in 1999. Tax compliance increased to 80 percent from 30 percent in 2005. Governors should ensure verifiable and transparent revenue reforms to ensure citizen support. Thirdly, the governor used accrued tax revenues to undertake ambitious public transportation and sanitation projects like railways network, bus lanes, waste collection system and massive road rehabilitation. The Lagos Bus Rapid Transit System (BRT) made transportation faster, safer, predictable, relatively cheaper and comfortable, and created 2500 jobs. Governors can collect more revenues if citizens can match revenues generated and rapid pace of developments. With the support of the private sector, the state procured over 1300 vehicles to provide transport in the city. Governors should consider more engagement with the private sector including more Public Private Partnerships (PPPs) to deliver. Upon expiry of his transformative terms at Lagos state, Fashola was appointed the Federal Minister for Energy, Works and Housing, what will be the legacy of our governors? Dr. Mutegi Giti, Urban management, Public Private Partnerships (PPPs) & Environment Specialist. mutegigiti@gmail.com, @danielgiti.

Published by Dr. Daniel Mutegi Giti, PhD.

I hold a Ph.D. in Urban Management; Master of Urban Management and Post Graduate Diploma in Housing from the University of Nairobi. My Undergraduate was a Geography major and Sociology minor from Egerton University. I am an Assistant Director for Housing - Slum Upgrading, State Department for Housing and Urban Development, within the Ministry of Transport, Infrastructure, Housing, Urban Development and Public works in Kenya. I have hands on experience on matters housing and urban development process in Kenya, including developing skills necessary to tackle the underfunding of housing and urban sectors through innovative financing and greater private sector participation through models like application of Public Private Partnerships (PPPs) in the infrastructure and housing development in Kenya and Africa.

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