In a landmark financial achievement, Kenya’s counties recorded a historic Sh58.95 billion in own-source revenue during the 2023/24 fiscal year, according to government reports. This remarkable growth represents the highest collection ever reported and underscores the impact of strategic reforms in the health sector coupled with the adoption of modern technology across county administrations. Analysts say the surge reflects improved efficiency in service delivery and a stronger fiscal base for counties to fund local development projects.
The record-breaking revenue is attributed to a combination of health sector reforms, including digitalized billing systems and improved collection mechanisms, alongside wider adoption of technology to streamline county operations. Counties such as Murang’a, Mombasa, and Nakuru emerged as leading contributors, leveraging both public-private partnerships and automation tools to enhance revenue mobilization. Officials highlight that these measures not only improved efficiency but also enhanced transparency and accountability, reducing revenue leakages and ensuring that more funds are available for community development initiatives.
Local leaders and business stakeholders have welcomed the report, noting the positive implications for infrastructure, education, and healthcare projects. This revenue milestone shows that counties can effectively mobilize resources to address the needs of their communities, said a senior official from the Commission on Revenue Allocation. Economists also suggest that sustained investment in technology and capacity building will be key to maintaining growth, while encouraging innovation in sectors such as agriculture, trade, and tourism.
Looking ahead, counties are expected to continue prioritizing digital transformation and service delivery improvements to sustain revenue growth. With adequate planning and continued reforms, experts believe that these resources will enable counties to expand social services, fund key infrastructure projects, and reduce dependency on national government transfers, ultimately fostering inclusive economic growth across Kenya.