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Economy

City Hall revenues drop to a 7-year low

Margaret Nyakang’o
Controller of Budget Margaret Nyakang’o. FILE PHOTO | NMG 

City Hall collected internal revenues amounting to Sh7.06 billion in the nine months to March, its lowest performance for the period since the start of devolution.

Data published Monday by the Controller of Budgets’ (CoB) shows that the Governor Mike Sonko-led administration generated Sh1.18 billion less than the Sh8.24 billion collected in similar period the previous fiscal year.

The 14.3 percent revenue drop shines the spotlight on the county that is now likely to post its lowest ever annual collections since 2013.

The drastic fall come at a time City Hall introduced its internal collection system that was, however, characterised by hitches that prevented motorists and residents from paying for parking and other services leading to daily loss of millions of shillings between June and July last year.

Controller of Budget Margaret Nyakang’o said that the Sonko administration should seal the leakages in its collections systems and free up more funds for delivery of development projects.

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“The county should come up with measures to address the under-performance in own source revenue collection so as to ensure the approved budget is fully financed,” Ms Nyakango said in the report.

City Hall introduced the new internal system to collect levies and fees on June 10 last year following the expiry of its five-year contract with electronic payment firm, JamboPay.

The Sonko administration said that the move would save City Hall of millions of shillings paid as commission to JamboPay. The new system, however, failed for weeks with City Hall official saying the hitches were costing the county tens of millions of shillings daily from parking and rates among others.

In March, The Kenya Revenue Authority took over the mandate of collecting all levies and taxes paid to City Hall for a two-year period.

KRA took over after Mr Sonko— barred from office over graft charges— handed over transport, health, public works, utilities and ancillary services, planning and development sectors to the State.

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