Why do counties struggle with pending bills?

Often, it starts with a math problem at the budgeting stage. Think about this: if you estimate you will earn KSh 50,000 this month but end up earning only KSh 30,000, you will inevitably accumulate debts in public finance terms, these are pending bills. The goal of KDSP II is to help counties produce more accurate and realistic revenue projections so that budgets reflect what counties can actually collect.

Background

Revenue forecasting falls under Key Result Area 1 (KRA 1): Sustainable Financing and Expenditure Management. Led by The National Treasury and Planning, the objective is simple: ensure county budgets are grounded in reality, not fiction.

Reform Activities

To meet these targets, the program supports several on-the-ground interventions:

• Development of Forecasting Models: Creation of an agreeable revenue forecasting model for counties

• Revenue Mapping Guidelines: Identifying new ways for counties to grow Own Source Revenue (OSR)

• Cleaning Tax Registers and Cadastres: Ensuring that data used for forecasting such as property rolls and business registers is accurate, leading to more realistic revenue targets.

• Automation and Digitalization: Mandatory integration with the e-Citizen platform and automated revenue systems to provide real-time data for forecasting.

Bottom Line

Better forecasting = fewer debts (pending bills) = more money available to finance development projects such as health centers, roads, and other public services.