Counties elevate Sh4.5 billion from enterprise permits

Council of Governors Chairperson, Anne Waiguru joined by different governors addressing the media on the Council’s places of work in Nairobi. FILE PHOTO | DENNIS ONSONGO | NMG

Counties’ revenues generated from issuing enterprise permits elevated by 21.7 p.c in the course of the previous monetary 12 months, pointing to improved resumption of enterprise operations within the nation from the influence of the Covid-19 pandemic in 2020.

The revenues from enterprise permits elevated by Sh795.8 million to Sh4.47 billion that the 47 counties collected within the fiscal 12 months ended June 2023, Treasury’s report of consolidated monetary statements for county governments exhibits. 

Learn: Non-tax income hits 3-year excessive of Sh29bn on mop-up

Within the 2021/22 monetary 12 months, the 47 counties generated Sh3.67 billion from issuing enterprise permits, a interval when the financial system was nonetheless recovering from results of the Covid-19 pandemic.

The Treasury, in a report on consolidated monetary statements for county governments for the 2022/23 monetary 12 months, notes that a number of counties have their very own income administrations, which is leading to improved collections.

“A variety of county governments now have their very own county income authorities which have revamped income assortment methods. These county governments embody Kakamega, Kiambu, Laikipia and Meru,” Treasury notes.

The Treasury stated the info from counties point out that a lot of their very own supply revenues relate to charges from enterprise permits and automobile parking charges.

Learn: Solely 4 counties meet own-source income goal

The counties in 2022/23 generated Sh3.8 billion from signal boards and promoting charges (a 5.9 p.c enhance from 2021/22), Sh2.29 billion from cess (a ten.3 p.c enhance from 2021/22) and Sh2.09 billion as receipts from sale of agricultural items (a rise of Sh469 million from 2021/22).

Parking charges generated Sh2.6 billion and public well being facility operations Sh3.39 billion, the 2 being amongst high income producing avenues for devolved models.

“Enterprise permits, well being amenities, charges and parking charges are the financial objects producing substantial income for the county governments. These streams account for 71 p.c of complete personal supply income generated by county governments in FY 2022/23,” Treasury said.

Whereas not among the many high 10 income turbines, revenues earned by counties from licensing of liquor companies elevated by a excessive margin of 16.2 p.c to Sh676.3 million, pointing to a potential resumption of leisure companies that promote alcohol within the nation, because the financial system recovers.

The Controller of Finances (COB) in 2022/23 reported that own-source income for counties in the course of the monetary 12 months was Sh37.8 billion, which was a 5.3 p.c enchancment from the Sh35.9 billion that counties generated from their very own sources in 2021/22.

“The OCOB recommends that the forty-four counties that didn’t obtain their OSR goal ought to develop methods to make sure the goal is life like and achievable within the subsequent monetary 12 months to keep away from pending payments within the coming monetary 12 months,” the COB said within the county governments’ funds implementation evaluation report for 2022/23. 

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