UNIFIED REVENUE SYSTEM PLAN SPARKS GOVERNORS’OPPOSITION

Governors have been dealt a setback after the National Treasury confirmed it will proceed with plans to introduce a single, integrated revenue collection system for all counties, effectively replacing the various platforms currently in use. Treasury Cabinet Secretary John Mbadi told the Senate County Public Accounts Committee on Thursday that the new platform is complete and designed to eliminate inefficiencies caused by the existing patchwork of county-operated systems. “We are rolling out an integrated county revenue management system to replace this fragmented framework,” Mbadi said.

The Council of Governors (CoG) has opposed the initiative, arguing it undermines devolution by dictating the systems counties must use. In 2023, they rejected a proposed law requiring counties to partner with the Kenya Revenue Authority (KRA) in developing such systems, saying many had already invested public funds in their own platforms. “A significant number of counties are already implementing revenue collection systems that should be recognised by law, as public resources have been used to develop them,” the CoG stated at the time.

Mbadi insisted that the multiplicity of platforms was unnecessary. “We cannot have 47 or 48 different systems in one country for revenue collection. At most, we should have two or three,” he said, noting that the Treasury had consulted governors and other stakeholders through the Intergovernmental Budget and Economic Council to prepare for the rollout.

Despite the pushback, Mbadi said he believed “a point of clarity” was being reached and that earlier objections stemmed from “a misunderstanding.” Currently, many counties outsource revenue collection to private fintech firms, incurring high procurement expenses and paying commissions on every shilling collected. Last year, KRA Commissioner General Humphrey Wattanga warned senators that the lack of standardised processes and the reliance on various vendors were undermining county revenues. He cited vendor-driven contracts, vague technical requirements, and high commission rates as major drains on resources.

Some counties still use outdated manual systems inherited from defunct local authorities, such as the Local Authority Integrated Financial Operations Management System (LAIFOMS).