Assessing the Realization of Own Source Revenue Under the Constitution of Kenya 2010: a Case Study of Bungoma County

Abstract

The Constitution of Kenya 2010 envisages devolved Governments that are resourced through two main instruments; National government transfers, and County government own source revenue. This research underscores the centrality of own source revenue in the success and nature of devolution. The paper faults why the country‟s public debate on fiscal stress and fiscal stability has been centered majorly on the National Government transfers, overlooking county own source revenue, these despite previous studies revealing that the aggregate county own source revenue generation is inordinately low constituting to only approximately 9% of the total national revenue annually. This study interrogates the realization of own source revenue under Kenya‟s supreme law giving attention to Bungoma County Government. The study aims to contribute to mechanisms of boosting own source revenue as an instrument of resourcing counties, successfully which, the project paper notes will maximize efficiency in County Governments operations. The contribution made through this research will also play a fundamental role in the elimination of fiscal stress in both levels of government augmenting a match between revenue and obligations at the devolved units, as envisaged by the Constitution. To holistically establish the status of own source revenue mobilization in Kenya‟s devolution, this research will examine the trends on county own source revenue together with the legal and policy framework underpinning it. The main streams of county own source revenue will also be interrogated. The study exposes that currently, all county governments in Kenya including Bungoma County depend on National Government transfers for survival. The paper also notes that Bungoma County has not maximized the potential of the authorized instruments of own source revenue as envisaged by the Constitution. After independence, Kenya had tried out regionalism which scholars argue was repudiated by the political class and eventually overruled majorly because the regions depended wholly on the central government for fiscal support. To protect the existence of devolution, and to maximize efficiency in county governments, this paper recommends that county governments should inter alia enact entertainment and property tax legislations as envisioned by the Constitution together with boosting execution of the available streams of revenue to maximize own source revenue collection.