The revenues generated by counties in Kenya from issuing business permits saw a substantial increase of 21.7 percent in the past financial year, indicating a reinvigoration of business activities post the Covid-19 impacts. A report by the Treasury revealed that the total revenue from business permits surged by Sh795.8 million to Sh4.47 billion, showcasing a robust collection performance by the 47 counties in the fiscal year ending June 2023.
The Treasury's report on consolidated financial statements for county governments emphasized the positive impact of counties having their revenue administrations in place, leading to enhanced revenue collections. Several counties such as Kakamega, Kiambu, Laikipia, and Meru were highlighted for their effective revenue collection strategies through their county revenue authorities. The data showcased that counties are heavily reliant on revenue sources like fees from business permits, vehicle parking fees, signboards, advertising fees, and cess. Business permits, health facilities, rates, and parking fees were identified as the primary revenue generators, collectively contributing to 71 percent of the total own-source revenue for county governments in the 2022/23 financial year.
In addition to the surge in business permits revenue, counties also saw increased earnings from other sources like signboards and advertising fees, cess, agricultural goods sales, parking fees, and public health facility operations. The revenue from licensing liquor businesses saw a significant uptick of 16.2 percent, indicating a potential recovery in the entertainment sector that sells alcohol as the economy gradually rebounds. The Controller of Budget (COB) reported a 5.3 percent improvement in own-source revenue for counties in the 2022/23 financial year, urging counties that didn't meet their revenue targets to develop realistic strategies for the following year to avoid pending bills and financial challenges.