Senate ICT Committee Urges Counties to Boost Revenue Collection to Address Wage Bill Crisis

ELDORET, Kenya – The Senate Committee on ICT has called on counties to enhance their internal revenue collection to address mounting wage bill challenges.

Speaking during a visit to Uasin Gishu County, committee chair Trans Nzoia Senator Allan Chesang criticized counties for failing to maximize revenue due to inefficient and outdated collection systems.

The committee is conducting a nationwide tour to evaluate counties’ capacities to generate own-source revenue.

Chesang emphasized that digitized revenue systems are essential for closing gaps that lead to significant losses.

“We are here to assess how counties can improve their revenue streams, which are crucial for managing wage bill challenges and funding development,” Chesang stated after meeting Uasin Gishu Governor Jonathan Bii in Eldoret.

Nandi Senator Samson Cherargei highlighted the disparity between counties’ revenue potential and their actual collections.

He commended Uasin Gishu for increasing its revenue to KSh1.4 billion in the last financial year but noted that the county could generate over KSh2 billion annually.

Cherargei urged counties to adopt an Integrated County Revenue Management System recommended by the Kenya Revenue Authority (KRA) to address loopholes in revenue collection.

“This system would significantly enhance accountability and ensure counties can meet their wage bill targets, keeping them below the recommended 35 percent of total expenditure,” Cherargei explained.

He added that Uasin Gishu’s adoption of a digital Pay system had already boosted its revenue collection.

Senator William Chesang lamented the continued reliance on manual revenue collection in some counties, which he said contributes to heavy financial losses.

“Leakages in manual systems are a major concern. An integrated system will ensure maximum collection and greater financial independence for counties,” Chesang remarked.

The committee also urged counties to utilize funds held in the County Revenue Fund (CRF) at the Central Bank of Kenya to enhance financial stability.

The senators plan to visit Elgeyo Marakwet and Trans Nzoia counties as part of their assessment tour.

They stressed that improving own-source revenue is vital for counties to reduce their dependence on allocations from the national treasury and achieve self-sustainability.