Treasury will collect revenue for counties
KRA will charge a commission. Counties say some revenue is collected, pocketed
County governments have turned to the National Treasury to help improve revenue collection after their Pesa Mashinani initiative collapsed.
Council of Governors Finance chairman and Kakamega Governor Wycliffe Oparanya on Friday said they have discussed their diminishing revenue.
The Kenya Revenue Authority has agreed to assist counties collect property and entertainment taxes, he said.
Oparanya said the National Treasury has drafted a model law to help counties collect taxes without being sued for imposing illegal charges.
“KRA will collect the taxes on behalf of counties at a commission. This will ensure more revenue, because most counties lack capacity and integrity to maximise the local revenue since people collect money and pocket it,” he told the Star.
On November 9, Controller of Budget Agnes Odhiambo announced that county governments missed their targets on revenue collection in 2015-16 financial year by Sh15 billion.
The Annual County Governments Budget Implementation report 201516 released by the Controller of Budget shows the 47 regional governments raised Sh35.02 billion of the targeted Sh50.5 billion. However, that is a 3.5 per cent increase from Sh33.85 billion in 2014-15.
Oparanya said some counties have computerised revenue collection, but it is not a full financial system that can be integrated to handle both revenue collection and payments.