Meru governor picks team to deal with tax cheats in bid to collect Sh1b

Governor Isaac Mutuma’s administration has stepped up efforts to improve revenue streams by deploying enforcement and monitoring teams.

The teams will enforce the cashless payment of revenue in a bid to boost own-source collections.

The officials said the county is losing millions in revenue to tax cheats.

Finance Executive Monica Kathono said the county government was focused on tripling tax collections in the next financial year and had taken steps to ensure the revenue collection system was working effectively.

Kathono noted that the Commission on Revenue Allocation (CRA) had pegged the county’s revenue collection potential at Sh4 billion. “We are targeting to achieve Sh1 billion in the next financial year,” she said.

She said transitioning to cashless payments in health facilities had resulted in revenue growth from Sh300 million in 2022/2023 to Sh590 million in the 2023/2024 financial year.

"We have agreed that there will be no more cash payments. From all our hospitals to all our collection points, I want to tell the people of Meru, 'don't pay cash'. Because when you pay in cash, that money will go into somebody's pocket. But when you pay through the system that has been provided, we will be able to receive that money and channel it into providing services," Kathono said.

In the 2023/2024 financial year, the county revenue board managed to raise Sh385 million, and spent Sh336 million on staff remuneration and operations.

The Revenue Board CEO Edward Macharia said political interference was a major obstacle to revenue collection in the county.

Mr Macharia claimed that residents had in the past boycotted paying taxes at the instigation of politicians when they felt that the county government had allegedly not offered services effectively.

“We urge residents to cooperate with our officers and pay their taxes religiously. No cash payments will be allowed,” he said.

Governor Mutuma's Chief of Staff Julius Mbijjiwe revealed that they were sealing loopholes that had led to the loss of revenue.

“We have prioritised improving staff welfare by providing proper medical cover, promotions, and other benefits. We have also instructed the revenue collection system provider to ensure we have uninterrupted services. Our target is to collect Sh1 billion in the next financial year,” Dr Mbijjiwe stated.

The revenue board came under fire from MCAs after failing to raise adequate taxes to even support the board’s operations.

In the 2023/2024 financial year, the board collected Sh385 million and spent Sh336 million on remuneration and operations, something that did not go well with the ward reps and other stakeholders.