Revenue Reforms Pay Off As Nakuru Collections Rise To Sh5.4bn

By Suleiman Mbatiah

Nakuru County collected Sh5.4 billion in own-source revenue during the 2025/26 financial year, exceeding its target by 109.4 per cent, a performance Governor Susan Kihika attributed to reforms in revenue collection.

The figure represents a 47.95 per cent increase from the Sh3.65 billion collected in the previous financial year, according to the Controller of Budget’s County Governments Budget Implementation Review Report for 2025/26. The collection amounted to 109.37 per cent of the county’s annual target.

The county’s revenue performance was driven by several measures, including automated revenue collection, integration of payment systems and improved collections through Facility Improvement Financing (FIF), according to Kihika’s assessment.

“Am delighted because our work is speaking louder. We have set a new revenue record, according to the Controller of Budget report for the FY 2025/26,” Kihika said.

The Controller of Budget report shows that Nakuru’s total receipts increased to Sh25.38 billion during the financial year, up 16.74 per cent from Sh21.74 billion in 2024/25. The increase in own-source revenue therefore formed part of a broader rise in the county’s overall receipts.

Health and hospital-related collections accounted for a significant share of the revenue increase. The report shows that Facility Improvement Financing generated Sh3.57 billion, equivalent to 66.15 per cent of Nakuru’s total own-source revenue during the year.

The increased FIF collections came as county health facilities continued to collect payments through systems linked to the county’s broader financial management framework. The Controller of Budget also linked the revenue performance to improved reimbursements from the Social Health Authority (SHA).

The Governor said the administration had deliberately invested in technology and systems intended to improve the efficiency of revenue collection and reduce leakages. The county’s own material lists automated revenue collection, integration of payment systems and the Facility Improvement Fund among the measures behind the increase.

“Our bold steps in automation of revenue collection systems, integration of payment systems, teamwork and stronger Facility Improvement Funds are delivering results,” Kihika said.

The Controller of Budget’s findings broadly support the governor’s attribution of the increase to changes in revenue collection systems, while also identifying improved SHA reimbursements as a factor. The report specifically connects the increase to automated collection and integration with the County Integrated Financial Operations Management System.

The improved collection also means that Nakuru exceeded the annual own-source revenue target, reversing the weaker performance recorded by some counties during the financial year. At the national level, county governments collectively generated Sh97.55 billion in own-source revenue, equivalent to 89.99 per cent of their combined target.

Financial analysts say the revenue figures provide the county with a stronger own-source funding base as it enters the 2026/27 financial year. Kihika said the administration intends to build on the gains and continue pursuing higher collections.

“We are aiming higher, driving growth, unlocking opportunities, and strengthening Nakuru County’s economy for every resident,” Kihika said.

The county’s challenge will now be to sustain the collection gains while improving recovery of outstanding revenue and translating the additional resources into higher development spending. The Controller of Budget has called for stronger revenue arrears recovery plans and better reconciliation of receivables by counties.