Laikipia Shrugs Off Pandemic Woes To Register Growth In Own Revenue

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Laikipia defied the challenges related to Covid-19 pandemic to improve on own source revenue collection in the first half of this financial year. By December 31, 2020 the county had collected in Sh322 million in revenue which is better that the first half of 2019/2020 when the County Revenue Board collected Sh289 million. The amount is three times what was collected during a similar period in financial year 2016/2017.
We would like to appreciate Laikipia citizens for paying their dues in terms of taxes on time, Finance CECM Murungi Ndai said when he presented the Executives half-year financial results last week.
The county government has made a tradition of releasing its financial statements to the public as required by law and also to inculcate a culture of transparency and accountability. During the occasion Mr Ndai noted the importance of such a culture of availing the information for public scrutiny.
The exercise is also important in gauging whether the government is still on track in implementing its mandates. It will provide suppliers of goods and services with relevant information to scrutinize the financial soundness of various institutions in the county government of Laikipia. It will be used by financial institutions partnering with the county and also contractors when dealing with the government.
This will create confidence among various stakeholders as it contains ways in which the county spends its budget.
We want to involve the public in every step of our financial utilization right from planning, budget execution, financial reporting and auditing, Ndai says.
The report detailed all the monies received from the national government as equitable share allocation Ksh. 4.1 billion a decrease from the initial allocation of 4.7 billion. The county targets to collect Ksh. 1 billion in own source revenue.
During the half year 2020/21 the county collected own revenue amounting to 322 million. In the half financial year 2016/2017 revenue collected was 110 million. During the same period for 2017/18 it jumped to 211 million.
The own revenue collection has been increasing steadily as the following year in 2019/20 the amount was 289 million for the half financial year.
Innovative
The government is focusing on innovative ways of financing its transformative projects within a strategy of growing its economy fourfold through production and manufacturing. The county has seen adopted innovative ways like floating of a development bond to finances projects.
The county can borrow up to 20 percent of its revenue which will be based on the most recent audited books 2019/20. The revenue last year stood at Ksh. 7.11 billion, which means the county will be able to borrow Ksh. 1.4 billion.
To restart the economy after the devastating effects pf Covid-19 pandemic, the county government in partnership with several commercial banks led by KCB and Co-operative Bank unveiled a business stimulus package targeting over 5,000 Laikipia. This is geared towards supporting the economy by having shs 3.3 billion affordable loans to cushion businesses from the effects of COVID-19. It will be available at a rate of 7% interest for individual businesses and 6% for cooperatives.
This financial year, a number of projects are ongoing while others have been completed. The Infrastructure Department has completed a total of 277 kilometres of graveled roads and graded 673.8 others through the innovative county Leasing program.
Previously building 1 km of road using a contractor would cost Ksh.1 million but now the same kilometre is being constructed at Ksh316,000 through the leasing program enabling the county to save a huge amount, Mr. Ndai said.
The county has also finished the Solio water project and already 1,800 households have metered connections. The target is 5,000 households.
In health, Nanyuki Mother-Child Hospitals has been completed and the remaining part is to equip it. In agriculture the county contributed more than 30 thousand tons of maize seedlings among other items to the residents of Laikipia.

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