In Summary
  • Mr Owegi said many county governments set unrealistic goals while others place theirs too low.
  • He added that some levies are inhibiting international protocol and agreements intended to ease trade.

The National Treasury is proposing a framework that aims to assist county governments to enhance and streamline their revenue bases.

National Treasury adviser Fred Owegi said collections in local authorities were on an upward trend from 2003 to 2013 before starting to dip.

Hence, they have created a deficit in county budgets, affecting development.

Out of the Sh49 billion target for the last financial year, counties only raised Sh32 billion, or 66 per cent. Why?

During a presentation in the ongoing fourth Legislative Summit in Kisumu, Mr Owegi said many regional governments set unrealistic goals while others place theirs too low, yet they can make more money.

RULE OF LAW

He said the ministry will come up with a framework to regulate the introduction of levies by devolved governments.

“On many occasions, county governments have been creating revenue streams that are not anchored in law. The policy by the Treasury will cure that,” Mr Owegi said.

He added that proposed levies should be submitted to the National Treasury or the Commission on Revenue Allocation for review and ratification 10 months before the beginning of a financial year.

That would also apply to issuing of waivers and variations of levies.

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