Technology is emerging as a powerful tool for counties in Kenya to improve service delivery and grow their Own Source Revenue (OSR).
This key takeaway comes from the inaugural OSR Growth Conference held at the Kenya School of Monetary Studies.
The conference, which coincided with the national debate on the Finance Bill 2024, brought together county leaders, revenue experts, and technology companies.
Discussions focused on innovative strategies to enhance OSR collection.
Overcoming Reliance on Allocated Funds
While the first half of the fiscal year saw counties collect a record KSh 20 billion, this still falls short of the 30% target, highlighting the need for a more sustainable approach.
Ndiritu Muriithi, former Governor of Laikipia County and Partner at Ecocapp Capital Ltd., emphasized this point.
The conference addressed the limitations of relying solely on national allocations.
Also, county leaders shared challenges faced in service delivery and explored successful case studies of OSR growth through technology adoption.
Success Stories: Technology in Action
Governors Gladys Wanga (Homa Bay) and Dr. Wilber Otichilo (Vihiga) presented how their counties leveraged technology.
Governor Wanga highlighted their Revenue Collection App, which streamlined collection processes and put them on track to exceed revenue targets.
Governor Otichilo showcased Vihiga’s data-driven approach, including mapping traditional herbalists to improve healthcare delivery. These examples illustrate the potential of technology in driving both service quality and revenue generation.
Unlocking Revenue Potential
Counties have a diverse range of revenue streams, including service fees, licenses, and market charges. With proper optimization, these sources could collectively generate an estimated KSh 260.6 billion.
“Efficient service delivery is key to revenue growth,” explained Muriithi. “Improved services translate to higher collection rates for services like healthcare and inspections.”
Moving Forward: Collaboration and Best Practices
The conference highlighted the need for collaboration between county governments and technology providers.
Learning from successful counties like Laikipia, Homa Bay, Kisumu, and Nyamira is crucial. These counties have prioritized tracking service delivery as a driver for revenue collection.