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[June 25, 2014]
Automation plan timely [Business Daily (Kenya)]
(Business Daily (Kenya) Via Acquire Media NewsEdge) The automation of payments for business permits and land rates to City Hall will seal leakage and increase its revenue.
The fact that the county government has less cash than it wants to spend is an indication of an entity that needs to improve how it collects revenue. Rate payers will be given a code and use their phones to pay.
The county government also plans to have other services such as parking automated.
READ: Nairobi permits, land rates to be paid via mobile from today County governments have an increased number of functions and their leaders are keen to be seen to be performing. Currently, Nairobi faces a deficit of Sh2.4 billion in its budget.
A survey done among 17 counties by the Institute of Certified Public Accountants of Kenya (ICPAK) shows that the way they manage their finances leaves a lot to be desired. Many cannot tell where their assets are located and do not even know about their liabilities.
The internal audit role is not being performed that well in a number of the county governments.
It has also emerged that many county government cannot raise as much cash as former local authorities. That may prompt the question whether the units will become fully functional, but experts have cautioned that the county governments have teething problems and need to be given time.
They must, however, begin somewhere and improvement in revenue collection is one good place to start.
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