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Posted on November 2, 2020June 5, 2021Categories Uncategorised   Leave a comment on Can Counties support themselves with the revenues they raise?

Can Counties support themselves with the revenues they raise?

Yes and no. There are some counties that have the potential to raise a significant amount of own-source revenues, and others that have a limited ability to do so. The question raised by this blog post is an important one, since most counties are highly dependent on the equitable share,and have twice now been left in limbo following squabbles over the equitable share. The only revenues that counties have full control over are their own source revenues.  So to answer … Continue reading “Can Counties support themselves with the revenues they raise?”

Posted on October 28, 2020June 5, 2021Categories Uncategorised   Leave a comment on Systems are a large part of the problem over budget implementation

Systems are a large part of the problem over budget implementation

Seven years ago, Kenyans had all reasons to be expectant when the 47 devolved governments were ushered in through the 2010 Constitution. This devolution created an era identified by ambitious pledges to bridge the development gap between the well-off and the poor areas. To support these inclusive development campaigns, well-timed resource mobilization strategies were set up to raise resources for the effective delivery of devolution. Over the years, budget implementation reports by the Office of the Controller of Budget (OCoB) … Continue reading “Systems are a large part of the problem over budget implementation”

Posted on October 1, 2020June 5, 2021Categories Uncategorised   Leave a comment on The effect of COVID-19 on the provision of Universal Health Coverage in Kenya

The effect of COVID-19 on the provision of Universal Health Coverage in Kenya

The effect of COVID-19 has adversely affected the provision of key services by the government. In the health sector, the pandemic has exacerbated the historical challenges affecting the sector including insufficient health budget, weak relation between the medical personnel and the county government, insufficient medical supplies and poor health infrastructure among others. Universal Health Care (UHC) was rolled out to all counties in January this year after a pilot was conducted in 4 counties in 2018/19 (Machakos, Nyeri, Kisumu & … Continue reading “The effect of COVID-19 on the provision of Universal Health Coverage in Kenya”

Posted on October 1, 2020June 5, 2021Categories Uncategorised   Leave a comment on Ballooning pending bills and their effect on the Kenyan economy

Ballooning pending bills and their effect on the Kenyan economy

The accumulation of pending bills has raised concerns in the recent past, with the President calling for a special audit to be done by the Office of Auditor General (OAG). Reports from the Office of Controller of Budget (OCoB) 2012/13 and 2013/14 show that pending bills, together with debt repayment, amounted to Kshs. 1.7 billion and Kshs. 3.7 billion respectively.  A pending bill is an unsettled financial obligation at the end of a financial year. Pending bills arise when an … Continue reading “Ballooning pending bills and their effect on the Kenyan economy”

Posted on August 11, 2020June 5, 2021Categories Uncategorised   Leave a comment on Taming the rising county wage bill

Taming the rising county wage bill

County Governments are facing rapidly declining own source revenue and stagnated Equitable Share. This calls for the need to reorient county expenditure strategies in order to facilitate the response to crucial spending needs, most especially over the COVID-19 pandemic. On the other hand, counties over the years have been experiencing large increases in their wage bill. Year on year, the Office of the Controller of Budget (OCoB) notes with increasing alarm, an ever-rising county personnel emoluments (P.E.) expenditures as one … Continue reading “Taming the rising county wage bill”

Posted on June 16, 2020June 5, 2021Categories Uncategorised   Leave a comment on What the Supreme Court advisory means for the Division of Revenue

What the Supreme Court advisory means for the Division of Revenue

On 15th May 2020, the Supreme Court issued an advisory on four key PFM issues. For the benefit of those who may have not come across the advisory, the issues are summarized as follows; Whether the recommendation by the Commission on Revenue Allocation is binding upon both Houses during deliberations concerning the Division of Revenue Bill and the Appropriation Bill. The Court gave an opinion that “the recommendations by the Commission on Revenue Allocation are not binding upon either the … Continue reading “What the Supreme Court advisory means for the Division of Revenue”

Posted on June 12, 2020June 5, 2021Categories Uncategorised   Leave a comment on How ordinary revenues have been affected by COVID-19

How ordinary revenues have been affected by COVID-19

The outbreak of the coronavirus pandemic and the different measures introduced by the government to control the spread of the virus has slowed down economic growth leading to underperformance in revenue collection. This is as a result of the slowdown of trade, travel restrictions and the tax reliefs introduced by the government that constrain the economy and revenue collection.  In a special bulletin, the Budget Parliamentary Office (BPO) in March estimated that Kshs 122 billion is likely to be lost … Continue reading “How ordinary revenues have been affected by COVID-19”

Posted on May 13, 2020May 14, 2020Categories 2020   Leave a comment on How SME’s can engage in CSR over the COVID-19 slowdown

How SME’s can engage in CSR over the COVID-19 slowdown

Now more than ever during this period of crisis when solidarity is called on to get through the pandemic, businesses have an opportunity to make a significant contribution. Corporate Social Responsibility (CSR) is not only important for businesses as accountable members of society, but is also an opportunity for an organization to interact with socioeconomic, cultural, and environmental systems in society.   While big corporations are able to give huge donations both in-kind and monetary, SME’s also have an opportunity to … Continue reading “How SME’s can engage in CSR over the COVID-19 slowdown”

Posted on May 12, 2020June 5, 2021Categories Uncategorised 1 Comment on A snapshot of the budget making process

A snapshot of the budget making process

The budget-making process at the County level is a subset of a grander Public Finance Management (PFM) process. Public finance management (PFM) in Kenya is anchored in Chapter 12 of the Constitution of Kenya and the Public Finance Management Act 2012 (PFMA). The PFMA was developed with the recognition that a good PFM system is key for the success or failure of a decentralized system of government.  The PFM process encompasses four broad areas: i) collection of revenues; ii) allocation … Continue reading “A snapshot of the budget making process”

Posted on May 5, 2020May 12, 2020Categories Uncategorised   Leave a comment on Effect of drastic fall in oil prices – Is the drop in oil prices good for Kenya?

Effect of drastic fall in oil prices – Is the drop in oil prices good for Kenya?

As the effects of the Covid-19 pandemic weaken global demand, oil markets are facing an unprecedented crisis. The US’s benchmark index for WTI crude oil dropped below $0 on April 20th following the sharp decline in its demand outlook. Coming closer home, we ask, will falling global oil prices help Kenyans? *** It has been a season of immense economic shocks in the global economy. The Russia–Saudi Arabia oil price war, Brexit, climate change, and locust invasion in some parts … Continue reading “Effect of drastic fall in oil prices – Is the drop in oil prices good for Kenya?”