NAIROBI, Kenya – Senators have opposed the National Treasury’s proposal to compel all 47 counties to adopt a centralised revenue management system, warning that it would undermine devolution and replicate failures witnessed in past national initiatives.
The Senate ICT Committee, chaired by Trans Nzoia Senator Allan Chesang, said it would instead back counties in building secure, tailor-made systems suited to their needs rather than forcing them into a uniform platform.
Speaking during an oversight visit to Kiambu County on Wednesday, Chesang noted that senators had initially supported the Treasury plan, citing weaknesses in county revenue frameworks.
However, he said the committee had since shifted its stance after witnessing successful reforms at county level.
“In the beginning, we agreed with Treasury’s proposal, believing counties could not manage effective systems. We are now changing our approach. We will advocate for each county to develop its own secure and foolproof platform. With good leadership, counties can run their systems efficiently, and others should benchmark with Kiambu,” said Chesang.
The Treasury’s draft Public Finance Management (Integrated County Revenue Management System) Regulations, 2025, seek to introduce a national digital platform for automating the collection of levies, fees, taxes and charges.
Treasury has argued that the system would improve efficiency, transparency and accountability.
But senators warned that the move would amount to clawing back gains made under devolution.
Nominated Senator Beatrice Ogola cautioned that centralising own-source revenue under the Treasury would “cripple devolved services.”
“Placing revenue under Treasury is akin to killing devolution. Counties would be at the mercy of the national government, just like under KRA. When KRA withholds funds over delayed remittances, counties struggle to pay salaries or buy medical supplies. A centralised system would create the same crisis,” she said.
Kiambu’s model
During the session, Kiambu Governor Kimani Wamatangi showcased the county’s locally developed Enterprise Resource Planning (ERP) system, which he said has boosted revenue collection from Sh2.9 billion in 2022 to Sh5.45 billion in the current financial year.
When he assumed office, the county relied on three different private systems for permits, parking and land rates, which Wamatangi said were insecure and encouraged leakage.
“In one case at the Thika slaughterhouse, a client paid Sh20,000 through the system. The bank record showed only Sh16,000 deposited. The missing Sh4,000 could not be accounted for since the county had no control over the platform,” he explained.
The new ERP system, managed by the county’s ICT department, now integrates all major revenue streams — including trading licences, market cess, slaughterhouse fees, liquor licensing and hospital management — while also handling HR, fleet, land administration and development approvals.
Senators said Kiambu’s success demonstrates that counties can run their own systems effectively, provided there is strong leadership and accountability.
