Business Models for Revenue Generation and Enhancement Adopted by County Governments in Kenya
Abstract
As part of reforms, many countries are devolving responsibilities to local governments
which face the challenges of mobilizing appropriate levels of revenue to enable effective
service provision and address poverty and inequality issues. After the 4th march, 2013
general elections in Kenya, 47 county governments were established as per constitutional
requirements. Several factors in each county's political, administrative, cultural, social
and economic history are expected to affect the relationship of local government and the
citizenry, and hence its ability to generate revenues and administer services. Taking
cognizance that there is a completely deliberate strategy or a completely emergent
strategy, this study sought to foremost establish business models adopted by county
governments for revenue generation and enhancement. Secondly, to identify factors
influencing revenue generation and enhancement among the counties in Kenya. Out of
the target 47 counties, 39 counties participated in the study. Study results indicate that to
a very great extent, counties have provided public land for entrepreneurs as a revenue
generation model. The counties to a great extent also seek external funding from the
central government and development partners alongside developing economic linkages
with business community, developing of tailor made flexible economic development
incentive policies, encouraging investors to establish and expand businesses at the
county, providing suitable tax treatment to encourage entrepreneurs and encouraging
sustainable tourism within the jurisdiction of the county. There are also counties which
have encouraged establishment of research and development parks in the county,
developed revenue management capacity by training qualified personnel, trained staff in
efficient budgetary and financial management systems, established proper revenue
management mechanisms and implemented fiscal policy measures. There is however an
identified need for these devolved government units to innovate new models of attracting,
maintaining and retaining county individual attractiveness for investments, revenue
enhancement and revenue generation.
Citation
Latema,Moses O.,November,2013.Business Models For Revenue Generation And Enhancement Adopted By County Governments In Kenya.Publisher
University of Nairobi