Non-tax revenue collection by State agencies grew by Sh8.6 billion in the first quarter of the present financial year to June next year, propped up by the implementation of the single-pay bill collection system.
Fresh data from the National Treasury shows that non-tax revenue—known as ministerial appropriation-in-aid (A-I-A) and which includes fees and fines collected by State corporations—increased to Sh92.8 billion, marking a 10.3 percent growth from the same period of the previous year’s Sh84.2 billion. The State had set a target of Sh82.4 billion in A-I-A, fees and fine collections for the period.
Increased collections of A-I-A helped compensate for the missed targets for tax collections as the economy continues on a rough patch characterised by a weak shilling and global shock.
The increase in non-tax revenues captured the attention of President William Ruto who hailed the transparent and secure manner all revenues have been administered in his Jamhuri Day speech.
“We are, therefore, taking strong measures to ensure that all revenue is administered transparently, efficiently, and in a secure manner. One of our best interventions is the use of digital technology and the migration of government revenue collection to a single pay bill,” said President Ruto on Tuesday.
“Since this measure was implemented, we have witnessed a significant rise in total revenues collected. Besides enhancing revenue collection, digitisation has eliminated revenue leakages through corruption and theft.”
Promoting integrity
Dr Ruto then gave all State agencies until the end of this year to migrate to the e-Citizen platform.
“It is important that we sustain this progress in promoting integrity, transparency, and efficiency in revenue management. And for this reason, I direct that all agencies observe the December 31 deadline to finalise the migration to the e-Citizen platform.”
The government in August directed all ministries, counties, departments, and agencies to migrate to the single digital platform Paybill number 222222 and all other payment platforms to be shut down within 30 days of the circular issued by the head of public service on July 10.
The Paybill number might, however, be dealt a blow after two petitioners challenged the directive, arguing that it is unconstitutional.
Fredrick Ogola and lawyer Benard Odero Okello argue that the State acted unilaterally and arbitrarily by directing the closure of all government digital payment systems, to allow on-boarding all government services, at the national and county levels, into one digital payment platform eCitizen.go.ke.
Several agencies have moved to increase the fees and fines they charge as the State moves to supplement the tax collection in what is aimed at reducing Exchequer disbursement.
Some of the State agencies that have increased non-tax revenues include the Immigration Department which wants higher passport application and visa fees.
Other government services that are to be raised include land transaction fees as well as service charges by the National Transport and Safety Authority.
A big chunk of the tax revenues is being used to service debts, leaving the government with little revenue to pay salaries for civil servants.
