E-Citizen, dividends help beat cash target by Sh16bn


The National Treasury building in Nairobi in this picture taken on March 15, 2023. PHOTO | DENNIS ONSONGO | NMG

Revenue raised from fees charged on State services and fines have exceeded the target by more than Sh16 billion on the back of increased digitalisation and mopping up of excess cash in parastatals, the Treasury has said.

The non-tax cash receipts, which also include dividends from companies where the government holds shares, amounted to Sh82 billion in the financial year ended June against a goal of Sh65.56 billion set by the Treasury.

The flows, which surpassed the target by 25.07 percent, came in a fiscal year when the Kenya Revenue Authority missed Sh2.08 trillion tax receipts goal by Sh117.86 billion.

“The above-target performance is a result of investment income (dividends from GoK investments), surplus funds from Semi-autonomous Government Agencies (SAGAs) and revenues arising from service provision collected through e-citizen,” Albert Mwenda, director-general for budget, fiscal and economic affairs at the Treasury, told the Business Daily.

Services such as transportation permits like driving licences, land titling, and registration of persons are key sources of non-tax revenue. The other sources are royalties, investment income as well as fines and forfeitures.

The government has in recent years been moving services to an online portal, the e-Citizen, in a bid to improve efficiency and seal loopholes for bribery and other forms of corruption.

Some of the key State departments and agencies which have moved most of their services to e-Citizen include the Immigration and Citizen Services Department, the Kenya Revenue Authority, the Business Registration Service, the National Safety and Transport Authority, the Competition Authority of Kenya and Kenya Ports Authority.

A cyberattack on the government portal, for example, last week left many Kenyans frustrated seeking services frustrated, pointing to the shift of services to the electronic platform.

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