Kisumu has been cleared of any wrongdoing in awarding Strathmore University and Cooperative Bank a tender for revenue collection.
The public procurement board said the contracts conformed with the law.
The board, sitting in Kisumu on Tuesday, dismissed a case filed by former revenue services providers Riverbank Solutions Limited and KCB, who wanted the new contracts cancelled. The ruling gives Kisumu the greenlight to implement a new cashless revenue collection system through which the county government aims to reach its Sh5 billion annual revenue target.
The system is anticipated to seal loopholes through which revenue was being lost.
Finance executive Nerry Achar said the automated system will also weed out cartels who had been looting public money by running a parallel ticketing system.
“Kisumu has been collecting about Sh1 billion annually for the last five years. With the new system we believe Kisumu can collect between Sh5 billion to Sh7 billion per year,” Achar said.
He said they will now capture new areas such as land rates and advertising.
The new system is mobile based and traders will use their phones to make payments.
It comes with a geo-mapping function that will ensure traders have unique identification numbers for easy monitoring.