Rank: Member Joined: 7/1/2009 Posts: 256
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kayhara wrote:Monk wrote:wukan wrote:Quote:County governments are likely to struggle to implement their development plans because of their dwindling ability to collect revenue. The latest report from Controller of Budget Agnes Odhiambo shows that in the first half of the 2017/2018 financial year, county governments' own source revenue (OSR) dropped by 28.9 per cent to Sh9.95 billion. The revenue, achieved between July and December last year, translates to 18 per cent of the annual target of Sh55.84 billion. Counties now face a tall order to collect Sh45.89 billion before the close of the current financial year that ends in June. Read more at: https://www.standardmedi...venues-hit-a-3-year-low The fall in purchasing power  Heads in the sand...they think the problem is "...counties' capacity to collect..."; they can't see that the SME sector is gasping for air in the prevailing economic environment. Yeah counties capacity to collect is the real reason they are struggling, a good example is land rates, you always see waiver on rates ads on papers every now and then, not sure but Mombasa and Nairobi are owed about 150 billion in unpaid land rates. land owners do not have a reason to pay as no one will likely follow up, the only time I have seen guys paying rates is when submitting plans or selling their land. My turnover last year was 30% of the previous 2 years. Based on what I've observed around me, it seems I'm not alone in this situation. I've whittled down my costs significantly to stay afloat. By extension, KRA and the county government made less from my business activities and reduced spending. @Kayhara perhaps you have not taken a hit...good for you. If our losses balanced out with your (businesses that thrived) gains, then tax and levy collections would stay constant, or increase where tax rates have been raised.
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