By Habil Onyango
Upon taking office in 2022, Homa Bay County Governor Gladys Wanga implemented a cashless revenue collection system, prohibiting traditional cash transactions.
This initiative aimed to enhance revenue collection, improve accountability, and curb tax-related corruption in the region, fulfilling a promise to streamline revenue mapping, collection, and management as one of her top priorities.
The cashless plan was part of Governor Wanga’s objectives during her first 100 days in office, following the establishment of a Revenue Board and a fact-finding exercise conducted by a task force on revenue.
“Through the Cashless Plan, I am optimistic that we will achieve our target of collecting 1 billion shillings or more every year,” Wanga stated during the programme’s launch.
As promised, the new system has put the county on track to meet its annual collection target of Ksh. 1 billion, making this goal increasingly attainable.
In the previous financial year 2022/23, Homa Bay County collected a total of Ksh. 553.74 million. Under Wanga’s administration, this figure has risen to Ksh. 1.04 billion, according to the Controller of the Budget’s report for the 2024/25 fiscal year.
In the 2022/23 fiscal year, the total collection for Homa Bay included Ksh. 159.56 million under Own Source Revenue (OSR), excluding health-related funds, and another Ksh. 394 million classified as Appropriation in Aid (AIA) and the Facility Improvement Fund (FIF) in the health sector.
By the end of the financial year on 31 March 2025, total revenue collection had increased to Ksh. 1.04 billion, approaching the target of Ksh. 1.48 billion.
According to the report, during the 2024/25 fiscal year, the County generated Ksh. 1.04 billion from its various revenue sources, reflecting a 12 per cent increase compared to the Ksh. 927.23 million generated during the same period in FY 2023/24.
This amount accounted for 70 per cent of the annual target and 19.3 per cent of the equitable revenue share disbursed.
The total OSR collection for the fiscal year under review comprises Ksh. 753.15 million from Facilities Improvement Financing (FIF) and Ksh. 285.54 million from OSR excluding health.
According to Professor Margaret Nyakango’s report, Homa Bay County’s approved Gross Budget for FY 2024/25 stands at Ksh. 11.88 billion.
This budget includes Ksh. 4.21 billion (35 per cent) allocated for development programmes and Ksh. 7.67 billion (65 per cent) for recurrent expenditure.
This budget reflects a 6 per cent increase from the FY 2023/24 estimates, which included a development budget of Ksh. 3.51 billion and a recurrent budget of Ksh. 7.66 billion, with a target of Ksh. 1.48 billion (13 per cent) generated as gross OSR.
The health sector AIA/FIF remains the highest revenue contributor, accounting for Ksh. 753.15 million, making up 72 per cent of total OSR receipts.
Other sources of revenue include the Single Business Permit, which generated 7 per cent of total OSR (Ksh. 69.86 million), while revenue from bricks, sand, murram, and stones yielded Ksh. 37.15 million (5 per cent).
Bus park fees contributed Ksh. 37.15 million (4 per cent), while market dues generated Ksh. 30.36 million.
Additionally, Ksh. 21.98 million (2 per cent) was collected from other cess income, and miscellaneous income accounted for Ksh. 20.62 million (2 per cent).
Income from kiosks and stall rents generated Ksh. 6.99 million (1 per cent), with other sources bringing in Ksh. 47.07 million (4 per cent).
The budget was financed from the following revenue sources: an equitable share of nationally raised revenue totalling Ksh. 8.44 billion (71 per cent), additional allocations and conditional grants of Ksh. 1.83 billion (15 per cent), and equalisation funds of Ksh. 128.60 million (1 per cent).
Of its OSR, Ksh. 981.07 million was to be generated from AIA and the FIF (revenue from health facilities), while Ksh. 501.74 million was ordinary own-source revenue.
“The County managed to achieve 70 per cent of its gross OSR target for the 2024/25 fiscal year,” the report states. “This increase in revenue is attributed to the automation of all revenue streams by the County Government,” the report concludes.
