MEETING TARGETS

City Hall to ask KRA to collect its revenue

Sonko says he will request national government to deploy NYS officers to revenue department

In Summary

• Nairobi's revenue collection has been declining since 2013.

• Plan is to seal all loopholes believed to be the reason for failure to meet targets.

Nairobi County headquarters at City Hall.
Nairobi County headquarters at City Hall.

Nairobi county is considering engaging Kenya Revenue Authority to collect revenue.

Governor Mike Sonko said his administration will also request the national government to deploy NYS officers to its revenue department.

 KRA is among the options Sonko is considering despite the county launching its own collection system after termination of JamboPay's contract in June.

“I had options of KRA, Cooperative Bank, National Bank, Kenya Commercial Bank and the option was to go with NBK as we knocked down other options due to various reasons,” he said.

Sonko said he has a plan to integrate the revenue collection system to print payment receipts and licenses instantly.

This, he said, is aimed at sealing all the revenue loopholes believed to be the reason for failure to meet collection targets.

The county's revenue last financial year was Sh10.2 billion against a target of Sh15.5 billion.

Reports by the Controller of Budget reveal Nairobi's annual revenue collection has been declining year after year.

At an average of Sh11.08 billion per year, City Hall collected Sh33.24 billion between 2013 and 16.

In the financial year ended June 30, 2017, the county government realised about Sh12 billion against a target of Sh17.2 billion.

Use of outdated valuation rolls, lack of information on all county taxes and incomplete automation of all revenue streams have been blamed for the poor revenue performance.

Other factors are lack of adequate resources for revenue mobilisation, legal frameworks and policies and poor enforcement.

The county government says it will start aggressive enforcement on non-complaint customers and regularise all revenue streams .

The drop in revenue collection was among reasons City Hall terminated Jambopay's contract of 2013.

JamboPay digitised 136 out of the 138 county revenue streams.

JamboPay had been working on the Local Authority Integrated Financial Operations Management System, which the county said was difficult to run.

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