MURANG'A — Murang'a County has reported a notable increase in its own source revenue, growing by 26.49 percent from Sh520.3 million in the fiscal year 2021-2022 to Sh658.17 million in 2022-2023. This growth aligns with the County Assembly's objective to enhance resource mobilization through various revenue streams.
According to Kenya News Agency, the total revenue target for Murang'a County was set at Sh1.58 billion, comprising Sh1 billion from own source revenue and Sh500 million expected from the privatization of Murang'a County Creameries. The report highlights several high-performing revenue streams, including licenses, hospital and health center fees, liquor licenses, and plan approvals, indicating a proactive approach to increasing the county's fiscal capacity.
The CBROP 2023 projects that county revenue will continue to grow over the medium term by 2 percent and 2.5 percent, respectively. It also notes that the county government utilized 86 percent of the approved budget for the fiscal year 2022-2023, with verified pending bills amounting to Sh642,197,909. The approved budget for this period was Sh9.8 billion, sourced from various allocations, including an equitable share, own source revenue, and grants.
The county's expenditure for the same period was Sh8.5 billion, divided between recurrent expenditures of Sh6.4 billion and development expenditures of Sh2.04 billion. Despite the revenue performance leading to a budget deficit of 8.5 percent, the deviation from the financial objectives outlined in the County Fiscal Strategy Paper (CFSP) 2022 was attributed to it being a transitional year for the new county administration.
The administration's focus on aligning its manifestos and objectives with the budget has led to the introduction of new programs aimed at promoting economic growth through agricultural productivity, health support funds, school feeding programs, youth empowerment initiatives, ongoing infrastructural projects, and the automation of payment systems. These initiatives have been designed to promote equity and growth across the county.
Furthermore, the adoption of the County Integrated Development Plan during the fiscal year has provided a solid fiscal framework for implementing the current budget 2023-2024 and over the medium term. Charles Machigo, the Assembly's Budget and Appropriation Committee Chair, emphasized the importance of prioritizing resource mobilization and developing Public-Private Partnerships for the fiscal year 2024-2025 to ensure fiscal discipline and support economic growth.
The CBROP serves as a crucial tool in reviewing the previous fiscal year's performance, addressing deviations from set financial objectives, and proposing measures to overcome challenges. This process is vital for lawmakers to make informed decisions for future fiscal planning and budgeting, facilitating the Medium Term Expenditure Framework.