Kakamega County surpasses revenue target by Sh26m, now eyeing hospitals

The county government of Kakamega has surpassed its Sh293 million revenue target set for the first quarter of this financial year by Sh26 million.

This has been attributed to measures the government has put in place to enhance revenue collection and the lifting of the strict measures the central government had taken, including curfew to contain spread of Covid-19. 

Kakamega County Revenue Collection Agency CEO Aggrey Musindalo said economic activities started picking up after President Uhuru Kenyatta lifted the curfew the government had imposed on several western Kenya counties.

This was followed by the October 20 decision by the national government to lift a nationwide curfew that had been in place since March 2020.

During the same period last year, the county’s target for local revenue was Sh405 million. It only collected Sh352 million. The county administration attributed the shortfall to effects of Covid-19.

Musindalo said they reviewed the target this financial year because of tough economic conditions. “We wanted to set realistic budget targets for the county,” said Musindalo at his office yesterday.

The measures the county government has put in place include sealing loopholes through which collected revenue was looted.

He said enforcement officers had ensured strict enforcement of cashless system of revenue collection that saw rates payers send money directly to government accounts. “Implementation of the cashless system has contributed to improved revenue collection because it minimised corruption and sealed other loopholes through which funds were lost,” Musindalo said.

Musindalo said the biggest challenge was ensuring full implementation of the cashless technology. “But we have ensured revenue officers understand how the system works to make it efficient and sustainable.”

The cashless system was introduced three years ago.

Poor record-keeping and corruption were cited as main factors in the county’s poor revenue collection in the five years before the new system.

Musindalo said their focus has now shifted to major revenue streams, including hospitals, land rates, and liquor licenses, where the county got more revenue.

“These are the areas we want to put much focus on because they generate a lot of revenue. Unfortunately, not all money is remitted to county government account by some corrupt individuals,” he said.

He said increased supervision and regular field visits by senior county officials were some of the steps taken to address emerging challenges. “Our clients have been consistent in honouring tax obligations. We encourage voluntary compliance with tax payment,” said Musindalo.

He said the devolved unit had the potential of collecting adequate revenue for its operations and asked institutions, residents and traders to comply.

Governor Wycliffe Oparanya had earlier indicated that revenue collection dropped in 2019/2020 financial year because major businesses, including markets and bars, were closed due to Covid-19.

“Last year we were targeting to collect Sh2 billion, but ended up collecting Sh1.2 billion,” said the governor. “Public hospitals are our major sources of revenue, but we did not collect much because patients were not seeking medication at the facilities,” he added.

Oparanya said implementation of development projects was adversely affected by poor revenue collection.

He said the introduction of a cashless system helped them curb corruption and improve revenue collection.

Last month, Oparanya assented to the Kakamega County Finance Bill, 2021 to increase levies.