Nakuru banks on technology audit to stop revenue leakages

Like other counties, Nakuru has many pressing development targets to meet with the little money from the Committee on Revenue Allocation.

Faced with this financial deficit, Francis Mathea, the county’s executive on Finance and Planning employed technology to maximise revenue-collection which, among many other sources, is expected to supplement the money given to the county government from the national treasury.

The governor, Kinuthia Mbugua, said he had received Sh5.9 billion, out of which 73 per cent goes to paying the salaries of county government officials.

Through the directive of the governor and that of Mr Mathea, the county government’s Information Technology department installed two automated customised computer programme linked to four selected banks where the county’s business community was instructed to pay their dues.

Code scanners

Another programme—the walking revenue collection—would be used for smaller fees and charges such as parking, cess as well as market levies through mobile money transfer and smart cards swiped at a point of sale machines with bar code scanners situated in several sub county revenue collection centres.

Business licences, medical, environmental related money and any other larger fees would be paid through KCB, National Bank of Kenya, Equity and Family banks.

According to Mr Mathea, the county government had been losing up to 30 per cent of its revenue from the manual collection system.

He told Business Daily: “There has been a lot of revenue leakage and we believe this programme will ensure that we get at least 99 per cent of the money if not all… we are very optimistic”.

Mr Mathea cited examples of and discrepancies realised in the county government’s audit: “The traders with trucks carrying timber are expected to pay Sh 2,000 at the barrier but even though they pay the required amount the hard copy receipts at the records office reflect Sh500”.

Covert investigations by the finance docket revealed that the money not reaching the county government accounts would be shared in an elaborate chain that has been in existence.

Most business men had complained of paying their rents and other business- related fees to the county government but still get notifications of ejections despite having receipts for the payments.

The only solution, Mr Mathea said, was to ensure that no person came into contact with the money.

With the pay-at-the bank system, the Nakuru county government employees tasked with collecting the revenue only accept bank slips and counter-check it against the online bank statement in real time.

Mr Mathea says the programme incorporated at the accounts in the four listed banks use Boolean expressions method of programming: “The payment can only be processed to completion and slip processed if one pays above the minimum amount as stipulated in the County’s Finance Bill.”

Mr Mathea adds: “Guided by the Finance Bill which was incorporated during the design of the programme, there are only two options… you pay above the minimum amount, you get your transaction processed to completion and when you pay below it is rejected”.

The other method, the walking revenue collection, is designed for “smaller” fees paid to the county such as parking fees.

The smart cards that will be issued to the traders from next week will still apply the Boolean expressions in the amount of money deducted but which is unique to the sub county.

“Parking fees for personal saloon cars in Naivasha is Sh80, so if the card is swiped at Naivasha’s point of sale terminal it will deduct that amount while Sh100 will be subtracted in Nakuru,” said Mr Mathea.

Those who will pay using their phones will be issued with a code, which they will write on a piece of paper and place on the car’s dash- board. County officials will use the code to confirm payment.

Reconciling receipts

All the methods of payments will channel the cash to the four banks’ accounts. These methods have been welcome by both locals and the county employees who had been involved in revenue collection.

Mr Mathea said the locals were now confident that their levies would be put to proper use and the county employees spared a tedious process of accounting and reconciling the receipts and the money at hand.

The system is also expected to generate detailed reports of all the money that has been collected.

Nakuru has been making tremendous effort towards embracing technology in education, agribusiness and other sectors that the governor cites as the backbone of the county’s economy such as tourism.

Last week, the State House Digital Team signed a partnership agreement with Nakuru County government to enhance its information communication technology by delivering free Wifi, a website, a mobile app to a tune of Sh200 million.