Strengthen Fiscal Openness in Projects and Revenue Management (KEEM0004)

Commitment ID

KEEM0004

Commitment Title

Strengthen Fiscal Openness in Projects and Revenue Management

Problem

The absence of an operational M&E policy and the insufficient capacity of key committees (PMCs, WDCs and M&E Committees) has hindered effective project execution, reporting, and feedback in the county. In addition, the project management process is not fully in line with the Public Investment Management (PIM) regulations, making project implementation difficult. Additionally, the lack of an ICT-based platform for maintaining up-to-date project information, coupled with an institutional framework which has not been fully structured, causes delays in identifying and solving issues leading to inefficiencies and substandard projects. The county also struggles to meet its Own Source Revenue targets, due to lack of an up-to-date valuation roll, low compliance with tax regulations, limited awareness of the automated payment systems, inadequate enforcement mechanisms, and lack of a clear understanding by citizens on the linkage between tax compliance and the eventual development programs.

Status quo

According to the 2022 Auditor General audit report, only 40% of projects followed a structured management framework, with 65% of project management committees lacking adequate capacity for effective oversight. Public involvement is limited, with only 30% participating in project prioritization and implementation (ISA, 2022), and only 15% of residents have access to online project information due to the absence of an ICT platform (Communications Authority of Kenya, 2023). Additionally, 70% of citizens feel inadequately educated about their roles in local governance (National Democratic Institute, 2021) which undermines public oversight. The County’s own-source revenue achieved 45% of its annual revenue potential (County Revenue Report, 2022 by CRA). Despite updates to revenue systems, inefficiencies still result in an estimated 40% loss of potential revenue. Also, the 2022 Controller of Budget Report reveals that 35% of registered businesses do not comply with local tax obligations.

Action

The county will operationalize its M&E policy to institutionalize PMCs, and WDCs with clear roles, onboarding project data onto e-CIMES with a feedback mechanism and providing tools and templates for project monitoring. A price cost reference list will be developed to guide adequate allocation to projects. Training programs will be rolled out for M&E and project management committees to enhance their ability to assess project plans, BoQs, and reports, ensuring sustainability and aligning the management process with PIM regulations. The County will also improve its revenue collection by developing a property valuation roll, launching awareness campaigns like "Ushuru Mashinani," mapping revenue streams, automating the collection process, setting data-driven revenue targets, and building staff capacity for better revenue management.

How will the commitment contribute to solving the public problem described above?

Enhanced project management practices will ensure timely project implementation, high-quality outcomes, and stronger community ownership, contributing to long-term project sustainability. These practices will improve the efficiency and effectiveness of public funds usage, delivering better value for money. The county will boost tax compliance and update its valuation roll making it easier for citizens to meet their obligations which will eventually improve the county's own-source revenue generation. Automation and setting of data-driven revenue targets will further enhance efficiency in revenue collection, reduce revenue leakages and build public trust, resulting in sustainable revenue growth and effective service delivery.

What long-term goal as identified in your Open Government Strategy does this commitment relate to?

The main goal of enhanced project management and revenue collection is to ensure efficient and effective delivery of public services. Project management entails delivering projects on schedule, within budget, and to specified quality standards, ultimately improving community well-being, and building public trust in government. Achieving revenue targets ensures adequate funding for programs and projects thus reducing/eliminating pending bills, enabling timely completion and long-term sustainability.

Primary Policy Area

Fiscal Openness, Social Accountability

Primary Sector

Public Services (general), Science & Technology

What OGP value is this commitment relevant to?