Trea­sury will col­lect rev­enue for coun­ties

KRA will charge a com­mis­sion. Coun­ties say some rev­enue is col­lected, pock­eted

The Star (Kenya) - - Counties - HIL­TON OTENYO @hiltonotenyo

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.

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