Kakamega announces measures to boost own revenue

The county operates on a Sh15 billion annual budget and intends to raise its own revenue from Sh1.2 billion in the last financial year to Sh2 billion  this financial year.

An October report “Comprehensive Own Source Revenue Potential and Tax Gap Study on County Government” by the Commission on Revenue Allocation and World Bank indicates that Kakamega has the potential to collect up to Sh5.8 billion from own sources.

Governor Fernandes Barasa has said they will go paperless starting this financial year and streamline collection from existing revenue streams besides mapping out new streams to enhance collection.

Barasa said all payments will be made through a digital platform to avoid paperwork and bypass cartels to ensure all monies are paid directly to the county accounts.

"We have corrupt leaders and officials at the Kakamega Revenue Agency resulting in revenue lose through resultant leakages. I therefore direct that all collection systems be automated with immediate effect," Barasa said.

The governor has ordered the ICT, communication and e-government department to enhance the use of ICT for efficiency through a platform that will enable citizens access and pay for government services on-line.

Barasa said the current system had allowed crafty staff in other departments to engage in revenue collection, money which ends up in pockets of individuals.

"My staff should desist from any attempt to collect revenue, the collection mandate should be left to the agency,  staff from other departments should instead help the agency to identify more revenue streams in their departments to improve collection,” he said.

Barasa who chairs Council of Governors finance committee said the National government has not disbursed devolved units Sh90 billion for the month of October and November.

The county has also identified the mining sector as a potential area which is required to be fully exploited in terms of revenue collection where miners pay royalties.

He said his administration will streamline the mining sector by engaging all stakeholders to ensure revenue in form of royalties is paid to the county government.

“Part of my pledge to improve the living standards of our people and improve the economy is by streamlining the mining sector and ensuring people in the sector pay for the royalties from the prospects of the gold mining as a form of revenue to the county in a win-win situation,” Barasa said.

Last year the county government passed Kakamega County Finance Bill 2021 into law with levies being charged on miners to pay royalties as part of the county revenue to raise own collection.

Individuals who own mines will also be required to pay Sh10,000 annually to the county government as form of revenue.

There are 181 gold mine sites spread across in Lurambi, Ikolomani, Shinyalu and Butere out of which 171 are fully registered. The county has over 15,000 small-scale miners engaged in artisanal mining.

Miners produce between eight and 10 kilogrammes of gold per week and 416 milligrams per year estimated at Sh2.5 billion. 

The sector contributes between 20 and 30 per cent of the county economy. A gram of gold goes for between Sh4,800 and Sh5,200.

Shanta Gold Kenta Limited and Acacia Mining Company are engaged in exploration of identified gold deposits in the county that stands at 1.31 million ounces valued at Sh171 billion. It is expected the mining activities to last approximately 10 years in the Lirhanda corridor cutting through Kakamega, Vihiga and Siaya counties.

He said he will champion for the enactment of Gold Processing Bill, 2021 into law by legislators to bring order to the sector.

 

 

 

-Edited by SKanyara