Let counties mobilize more resources for development

The Controller of Budget has reported that on average counties spent 3 percent on development in the first three months of 2024 and 97 percent was used for all classes of recurrent expenditure. This represented a 3 percent absorption rate against the combined annual development budget of Ksh. 203 billion. The Counties Own Source Revenue (OSR) raised Ksh. 12.68 billion or a 24 percent rise from the 10.21 billion realized in the same period. This means the OSR grew by 2.47 billion in the first three months of the current financial year. All over the world, governments operate on revenues through taxes and charges that they impose in their jurisdictions. Revenue is an important fiscal factor for any government and a determinant on how such an entity spends and utilizes the resources to spur development within its areas of control. County governments in Kenya have been assigned fourteen functions by constitution. Implementation of these functions requires substantial resource mobilization in addition to the national government allocations to these entities. The effective mobilization of financial resources at the county level and efficient and transparent utilization of the same through sound investments in physical and social infrastructure is an important nexus for counties.

Resource dependency theory developed by Pfeffer and Salancik in 1978 holds that for any organization and entity to survive and hence continue to deliver its mandate, it must have strong capabilities to acquire and maintain resources. These fourteen functions require substantial amounts of money to effectively implement and hence counties need additional funds beyond what is provided through the national government mechanisms. It is because of the need to be self-sufficient in resource mobilization that the generation of financial resources to fund the fourteen devolved functions is important for ensuring sustainable development in line with the Kenya Vision 2030, East African Community Agenda 2050 and the African Union agenda 2063. The effective mobilization of financial resources at the county level and efficient and transparent utilization of the same through making sound investments in physical and social infrastructure is an important nexus for counties. This is because the resource mobilization and the utilization of the same in improving the living conditions, standards and welfare of the county residents and nationally is a key issue for developing countries and economies. Individual counties capacity in resource mobilization can be strengthened through the establishment of effective administrative procedures, training and ensuring technical capacity for revenue and other county staff and close collaboration with the national government in resource mobilization and utilization. In addition, effective utilization of Information Communication Technology (ICT) system is central to the operationalization of sustainable revenues and resource mobilization strategies by counties and other entities. Dr Giti is an urban management, public – private partnerships (PPP) and environment specialist. mutegigiti@gmail.com , @danielgiti