ZERO REVENUE

Much celebrated Kicotec giving Kitui zero revenue - Malombe says

Kicotec cost about Sh180m to set up while over Sh85m was pumped into the stone crusher

In Summary

•The Kicotec cost about Sh180 million to set up while over Sh85 million was pumped into the stone crusher

•The CRA chairperson had said that although Kitui had a potential of raising revenue amounting to Sh1.6 billion it only managed a paltry Sh400 million

The Chairperson of the Commission for Revenue Allocation Jane Kiringai and Kitui governor Julius Malombe during the press conference in Kitui on Thursday.
NO REVENUE The Chairperson of the Commission for Revenue Allocation Jane Kiringai and Kitui governor Julius Malombe during the press conference in Kitui on Thursday.
Image: MUSEMBI NZENGU

Two  Kitui County owned multimillion shillings corporations  gives  nil revenue returns, governor Julius Malombe disclosed on Thursday.

On the spot are the Kitui County Textile Centre and the Kwa-Kilui stone crusher in which the county government put millions to set up.

Although, at one time while still in office, Malombe predecessor Charity Ngilu told the media that setting up of Kicotec cost around Sh180 million, it is hazy how much the county spent on the stone crusher.

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A contract document that former MCA for Kitui Kwavonza ward, where the Kwa-kilui ballast crushes is domiciled, John Kisangau shared with the media in the past show that the contract for acquisition and installation of the crusher was Sh85 million.

But despite million having been sunk into the two projects that were touted to be formidable, the Kitui governor has said that the two projects generated no income.

He said Kicotec was a drain to the county coffers.

Malombe was addressing a press conference at his boardroom in Kitui, in the company of the chairperson of the Commission for Revenue Allocation, Jane Kiringai.

The latter had paid a courtesy call on the governor during a visit to areas of Kitui that would benefit from Sh550 million equalization fund projects.

The CRA boss advised that there was need for the county government to tie up revenue collection leaks.

“Kitui is collecting about Sh400 million.  But in the estimation of the commission Kitui can collect in excess of Sh1.6 billion,” she said.

She added that during hers discussions with Malombe, it came out clearly that something had to be done to improve revenue collection.

He said the Sh. 1.2 billion shillings difference between the collected Sh400 million and the potential collection of Sh.1.6 billion was too huge.

“That is money that can do a lot of development projects in this county if it is collected and not leaking into people pockets and is also being used well,”  noted Kirengai.

In response, Malombe admitted he was concerned that revenue collections for the county were low.

He however pledged a radical revolution in order to enhance the sickening revenue levels saying Kitui County had a huge potential.

He said his administration was interrogating areas it has zero revenue.

“One which has been mentioned is the multimillion crusher at Kwa Kilui. It was intended to be a source of revenue. We get nothing,” he lamented.

He said Kicotec that was also supposed to raise revenue was being looked into.

“We were told there will be police and other uniforms which will be made there and we will get revenue. The county is putting more than were are getting there,” he said.

“One of the areas is to ensure that there are no leakages in our revenue collections. So our methodology of collecting revenue is going to change. We are going to automate all our streams,” said Malombe.

He said besides maximizing on all revenue that can be collected in every stream, he added that the most important thing was to ensure that revenue money did not end up in people’s pockets.

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