Own-source revenue is the amount of money collected locally by counties from providing goods and services to their constituents.
Own-source revenue sources often include fees from single business permits, land rates, game park fees, county housing, cess, and other sources.
The total own-source revenue in a county includes the ordinary own-source revenue collected from the provision of services and the Facilities Improvement Fund.
The Facilities Improvement Financing Bill established the Facilities Improvement Fund (FIF) and allows public health facilities to retain the revenues they collect to be re-invested for seamless operations and improved service delivery.[1]
Quick Facts
- The total Own Source Revenue collected by counties in FY 2023/2024 was Ksh 58.9 billion.[2]
- Ordinary Own Source Revenue amounted to Ksh 42.3 billion.
- Facilities Improvement Fund and Appropriations in Aid (A-I-A) were Ksh 16.7 billion.
Own Source Revenue over the years
Own source revenue collected by the counties has mainly remained the same in the last decade since the start of devolution.
In FY 2013/2014, the counties' own-source revenue amounted to Ksh 26.3 billion, rising to Ksh 33.9 billion in FY 2014/2015.[3]
Revenue collection remained largely the same between 2015 and 2018 before rising to Ksh 40.3 billion in 2019. It dropped again in subsequent years before reaching a high of Ksh 58.9 billion in FY 2023/2024.
The chart below shows the trends in Own Source Revenue collection by counties from 2013 to 2024.
Total Own Source Revenue collected by the counties
In the last financial year, 2023/2024, counties collected revenue amounting to Ksh 58.9 billion. This includes ordinary own-source revenue as well as the Facilities Improvement Fund.
- Nairobi County collected the highest revenue, Ksh 12.5 billion, or 21.3% of the total revenue collected by the counties.
- Mombasa County had the second highest own-source revenue collection, amounting to Ksh 5.9 billion, or 9.5% of the total revenue collected by the counties.
- Narok County had the third highest own-source revenue collection, accounting for 8.1% of the total revenue collected by the counties at Ksh 4.8 billion.
- Kiambu County collected 4.6 billion in its own source revenue, accounting for 7.8% of the total revenue collected by the counties.
- Nakuru County collected 3.3 billion, representing 5.6% of the total revenues collected by the counties.
The chart below shows actual own source revenues collected by the counties in FY 2023/2024.
Tana River County had the lowest own-source revenue collection, representing only 0.2% of the total revenue collected by counties. It collected Ksh 92.6 million in FY 2023/2024.
Marsabit collected the second-lowest own-source revenue of Ksh 145 million, representing 0.2% of the total own-source revenue collected by the counties.
Wajir collected the third lowest own-source revenue of Ksh 165 million, representing 0.3% of the counties' total own-source revenue.
Ordinary Own Source Revenue collection by county
Ordinary own-source revenue is the actual amount of money collected by the counties from the provision of services.
It excludes revenue collected from public health facilities, classified under the Facilities Improvement Fund, and which are retained for reinvestment and use by health facilities.
Ordinary revenue collection was highest in Nairobi County at Ksh 11.5 billion, followed by Narok at Ksh 4.7 billion and Mombasa at Ksh 4.6 billion.
Marsabit County collected the lowest ordinary own-source revenue, Ksh 54.9 million, followed by West Pokot, which collected Ksh 65.4 million.
Elgeyo Marakwet collected Ksh 80.8 million, and Tana River 88.8 million.
Total revenue collected under the Facilities Improvement Fund (FIF) and other sources
The total revenue collected by counties under the Facilities Improvement Fund amounted to Ksh 16.7 billion in the Financial Year 2023/2024.
Nakuru County collected the highest amount, Ksh 1.5 billion, followed by Kiambu, Ksh 1.2 billion.
The third-highest FIF collection was by Mombasa County at Ksh 1.1 billion, followed by Nairobi County at Ksh 1 billion.
The chart below shows revenue collected by counties under FIF and AIA.
Own Source Revenue as a percentage of total Gross County Product
The Gross County Product (GCP) is the national Gross Domestic Product broken down by county based on each county’s average contribution. It shows how much each of the 47 counties in Kenya contributes to the national economy.[4]
In this section, we determine the relative importance of a county's own-source revenue collection to its GCP.
The county with the largest percentage of own-source revenue to GCP was Narok, at 3.2%, followed by Laikipia, 1.3%, Mombasa, 1.2%, Isiolo, 1.2%, Makueni, 1.1%, Homa Bay, and Samburu, 1%.
The map below shows the revenue collected from own sources in each county as a percentage of its Gross County Product.
The counties with the lowest percentage of own-source revenue to GDP include Bomet (0.2%), Marsabit (0.3%), West Pokot (0.3%), Elgeyo Marakwet (0.3%), and Mandera (0.3%).
Nairobi County's own-source revenue collection as a share of its GCP was 0.5%.
See Also
- Total pending bills in Kenya – National and county governments
- Recurrent and development expenditure – National and county governments
- National government expenditure on foreign travel – 2024
- National government expenditure on education – 2024
References
[1] The Facilities Improvement Financing Bill, 2023. Accessed from https://health.go.ke/sites/default/files/Facilities%20Improvement%20Financing%20Bill%20Final.pdf
[2] Office of the Controller of Budget (August 2024). County government budget implementation review report. Financial Year 2023/2024.
[3] Office of the Controller of Budget (2014 – 2024). County government budget implementation review report. Financial Year 2013/2014 – 2023/2024.
[4] KNBS 2023. Gross county product 2023. Nairobi, Kenya.
