County governments collected nearly Sh54 billion from their own revenue streams in the first nine months of the 2025/26 financial year, with health facilities emerging as the biggest source of income and helping push collections above last year's levels, a new report by the Controller of Budget shows.
The latest report indicates that counties raised Sh53.88 billion between July 2025 and March 2026, compared to Sh45.91 billion collected during the same period in the previous financial year. The amount represents 54 per cent of the combined annual revenue target of Sh100.13 billion set by the 47 county governments.
Money generated through hospital services accounted for the largest share of the collections at Sh23.45 billion, while other county revenue sources brought in Sh30.43 billion.
The report identifies Samburu, Garissa and Kirinyaga as the strongest performers during the period under review. Samburu led the country after attaining 138 per cent of its annual target, while Garissa reached 109 per cent and Kirinyaga achieved 101 per cent. West Pokot and Trans Nzoia also posted notable performances after attaining 84 per cent and 81 per cent of their targets respectively.
In total, nine counties surpassed the 75 per cent mark of their annual targets. Twenty-four counties achieved between 50 and 74 per cent, while 14 counties remained below 49 per cent.
Turkana recorded the weakest performance after attaining only 14 per cent of its target. It was followed by Siaya at 20 per cent, Kisumu at 31 per cent, Kisii at 37 per cent, and Mandera and Kericho, which both recorded 40 per cent.
Controller of Budget Margaret Nyakang'o linked the low performance in some counties to weak returns from traditional revenue streams, limited application of revenue forecasting tools and low collections from health facilities.
Samburu collected Sh391.1 million during the period, representing an increase of 63 per cent from the Sh240.4 million raised in the corresponding period of the previous financial year. Income from game parks remained the county's largest revenue source after generating Sh231.97 million, accounting for 59 per cent of total collections. Hospital-related revenue contributed Sh113.1 million.
Garissa generated Sh459.13 million, up from Sh312.2 million collected in the same period last year. Health facilities accounted for Sh444.86 million, making up 91 per cent of the county's total revenue.
According to the report, other revenue streams in Garissa continued to underperform due to the use of manual collection systems. The Controller of Budget also linked the growth in revenue to increased hospital earnings following higher enrolment under the Social Health Authority, while drought conditions reduced income from livestock cess.
Kirinyaga raised Sh779.54 million, exceeding its annual target and posting a 44 per cent increase from the Sh542.66 million collected in the previous financial year. The county received Sh454.8 million from hospital fees, while the automation of revenue collection systems helped improve overall performance.
Among counties with larger revenue bases, Kiambu collected Sh3.9 billion, compared to Sh3.33 billion during the same period last year. Murang'a raised Sh1.16 billion, up from Sh832.42 million, representing a 39 per cent increase.
The report notes that Murang'a has automated all its 25 revenue streams. Collections under the Facility Improvement Fund are processed through the AfyaKE system, which has been in use since July 1, 2023.