Difference in Nairobi revenue raises questions
What you need to know:
Addressing journalists after reading the 2018/19 budget statement on June 26, Mr Kerich said the revenue target was Sh17 billion.
But while appearing before the ICT committee on Wednesday, JamboPay CEO Danson Muchemi said the firm realised Sh14.6 billion.
But Mr Kerich said there are complaints against the provider. JamboPay is not transparent at times.
There is confusion at City Hall following conflicting figures given as revenue collected in the just concluded financial year.
Acting Finance and Economic Planning executive Charles Kerich says the devolved government collected Sh8.2 billion while JamboPay, a company hired for the purpose, is talking of almost double that figure.
Addressing journalists after reading the 2018/19 budget statement on June 26, Mr Kerich said the revenue target was Sh17 billion.
ELECTIONEERING
He attributed the poor performance to the long electioneering period, waiver of cess and a weak enforcement of revenue collection.
Mr Kerich added that the county lacks systems to get revenue from key streams like rates, parking and outdoor services.
“We are not wholly to blame as every county experienced a drop in revenue,” he said.
“In Nairobi, demonstrations followed the elections and lasted for a month.”
NEW CONTRACT
But while appearing before the ICT committee on Wednesday, JamboPay CEO Danson Muchemi said the firm realised Sh14.6 billion.
The firm was contracted in 2014 by Governor Evans Kidero’s administration and has since digitised more than 100 of the 126 revenue streams.
The acting Finance executive hinted at exploring other revenue collection options when the JamboPay contract expires in April 2019.
MANAGEMENT
“There are complaints against the provider. JamboPay is not transparent at times. If the company says it has collected Sh4 million, one cannot really tell. It may have collected Sh6 million or even Sh7 million. I have discussed with colleagues and will be appointing a task force to advise the county on what to do when the company's term ends,” Mr Kerich said.
He added that the city county government intends to come up with systems that would ensure proper financial management.
POSSIBILITIES
"We may engage another company, the Kenya Revenue Authority or go it alone like Kwale County," he said.
Mr Kerich lauded the system by the coastal county called KwalePay as "very efficient and transparent".
“Running your own system has many advantages but I do not want to make the decision. I will bring a team from ICT, revenue and finance departments to look at the three possibilities,” Mr Kerich said.
