Lodwar —Turkana County’s own-source revenue (OSR) collection declined significantly during the first nine months of the 2025/26 financial year, raising concerns about the county’s ability to generate local revenue amid slowing economic activity.
According to the County Governments Budget Implementation Review Report for the first nine months of FY 2025/26, Turkana County collected KSh162.92 million in own-source revenue, down from KSh230.48 million collected during the same period in FY 2024/25. This represents a 29 per cent decline in revenue collection.
The report indicates that the county’s own-source revenue accounted for only 1 per cent of total receipts during the review period, compared to the equitable share from the national government, which contributed 82 per cent (KSh9.24 billion). Additional allocations contributed 6 per cent (KSh693.16 million) while balances brought forward accounted for 11 per cent (KSh1.26 billion).
Despite the decline, Turkana County remained heavily dependent on national government transfers, highlighting the challenge counties face in expanding local revenue streams.
Revenue Trend
A review of revenue performance over the past six financial years shows that Turkana’s OSR collection excluding health revenues remained relatively stable at between KSh124 million and KSh151 million before peaking at KSh143 million in the first nine months of FY 2025/26.
However, revenues generated through the Facility Improvement Financing (FIF) framework and health facilities dropped sharply from KSh110 million in FY 2024/25 to KSh20 million in FY 2025/26, contributing significantly to the overall decline.
The Controller of Budget attributed the reduced revenue collection to low economic activity within the county, which affected performance across several revenue streams.
Top Revenue Sources
Data from the Turkana County Treasury shows that cess fees remained the county’s largest revenue source, generating KSh62.38 million, representing 38 per cent of total own-source revenue.
Other major revenue streams included:
1. Single Business Permits – KSh32.15 million (20%)
2. Health/Hospital Fees and FIF – KSh20 million (12%)
3. Other Fees, Penalties and Forfeitures – KSh14.42 million (9%)
4. Conservancy Administration – KSh11.60 million (7%)
5. Other Sources – KSh9.75 million (6%)
6. Property Rent – KSh4.35 million (3%)
7. Administration Control Fees and Charges – KSh4.35 million (3%)
8. Market Fees – KSh4.04 million (2%)
The county government reported that it has automated 20 out of 22 revenue streams as part of efforts to improve revenue collection and accountability.
The decline in revenue collection comes despite Turkana County surpassing its annual own-source revenue target in FY 2024/25, when it generated KSh400.8 million against a target of KSh400 million. The latest performance suggests that the county may need to strengthen revenue mobilization strategies, stimulate local economic activity, and enhance compliance among businesses and taxpayers to reverse the downward trend.
With own-source revenue contributing only a small fraction of the county’s total income, the report underscores Turkana’s continued reliance on national government allocations to finance service delivery and development programmes.
