WEDNESDAY OCTOBER 28 2020
By JOHN MUTUA -Business Daily
Contract terms for revenue collectors and use of outdated systems are the main reasons for persistent shortfalls by counties, a new survey has shown.
The Institute of Certified Public Accountants of Kenya (Icpak)’s survey shows that contractual-based revenue officials collude with businesses and motorists to deny counties collections from parking fee, rates and other fees.
Icpak adds that majority of the counties are operating numerous revenue collection systems which are not integrated, raising fears that part of monies do not reflect in the revenue declarations.
The systems include the Local Authorities Integrated Financial Operations Management System that is not integrated with automated revenue systems.
Icpak reckons that lack of a standard system makes it impossible to validate, consolidate and analyse revenue raised through automated systems.
Counties have since start of devolution missed their own-source revenue targets forcing them to rely on transfers of equitable share of revenue from the Treasury to run operations.
“The study revealed lack of capacity and awareness among different cadres of county staff on revenue administration. In some counties the revenue officers have been employed on contractual basis hampering sustainability and encouraging pilferage,” Icpak says in the survey on 24 counties.