Kisumu banks on dialogue to enhance revenue collection

Governor Anyang’ Nyong’o’s administration is pursuing plans to expand its source revenue following spirited efforts by stakeholders to identify gaps in revenue collection.

This follows a groundbreaking initiative by the devolved unit in collaboration with the Civil Society Network under the Budget Action Group project to change public perception on revenues.

The group has been meeting various categories of traders with an aim of using dialogue to improve participation in the payment of revenues.

Kisumu is among the counties struggling to increase their locally generated revenue despite automating its revenue systems. While the low figures have been attributed to pilferages, public perception plays a significant role in the failure by the devolved unit to reach its revenue targets.

For instance, a report by the Controller of Budget for the first quarter of the 2024/2025 financial year indicates that the devolved unit collected a total of Sh259.36 million from Sh280 million. The figure represents a drop of eight percent.

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According to Michael Arum, the project’s manager, through their investigations, they established that the devolved unit can improve its revenue by changing perceptions and targeting key sectors.

A research done by the budget action group established that the county has the potential to increase its daily revenue by tapping into unremitted revenue.

“The devolved unit has the capacity to expand its revenue streams to accommodate more people and ensure that everyone participates in the process. Awareness campaigns is vital in encouraging residents to pay county taxes,” he says.

He said that dialogue with various categories of traders is important in helping change their perceptions about paying revenue.

“We have established that there are traders who opt not to pay taxes because of the approach by revenue officers as well as lack of public participation on new levies,” he says.

At the bus park, a number of traders told The Standard that communication gaps and lack of dialogue has been the stumbling block for those who want to pay taxes.

"With awareness campaigns, we have been able to know the importance of paying taxes. Most traders wants to pay taxes but at times the lack of public partiicipation on tax increments discourages others," said Moses Ouma, a matatu owner.

Michael Nyaguti, an activist and a member of the county budget action group, said that alternative dispute resolution will help encourage traders to participate in taxation.

“The county government should ensure that it offers services to the traders. For example, markets without amenities should have the required amenities to encourage them to pay taxes,” he says.

According to him, some traders who have land rate disputes with the devolved units can pay the amounts they owe the devolved units if the matters are solved through alternative dispute resolution.

Some of the cases that end up in courts takes several years to conclude effectively derailing revenue plans

Timothy Kajwang, the Chief Officer of trade said that they are working to involve traders in the budget making process and embrace dialogue to change their perceptions on taxes.

This was echoed by Elvis Otieno, the County Budget Officer who said that the devolved unit is in the process of implementing feedback mechanisms to enhance own source revenue.

"We are targeting to enhance our own source revenue. We will embrace dialogue and also implement feedback mechanisms," he said.