Senators Seek to Audit Private Revenue Collection Firms in Counties

A growing push by Kenyan senators aims to increase transparency and accountability in county revenue collection by subjecting private firms to external audits. Led by Senator Godfrey Osotsi, the Senate County Public Investment and Special Funds Committee is advocating for the Auditor General, Nancy Gathungu, to scrutinize the revenue collection practices of these firms.

Concerns over the accuracy of revenue figures declared by these firms have prompted the senators to question their operations. They allege that a lack of oversight has created a loophole through which billions of shillings are being siphoned from county coffers.

Testifying before the committee, Gathungu expressed concerns about the potential for revenue loss due to the unregulated activities of some revenue collection firms. She highlighted the proliferation of "briefcase companies" contracted by counties without adequate due diligence.

The senators are calling for amendments to the Public Finance Management Act to empower the Auditor General to audit the revenue collection systems of these firms. They argue that this would enhance transparency, accountability, and ensure that counties are receiving their rightful share of revenue.

Several counties, including Nairobi, Narok, Kajiado, Machakos, and Kilifi, have been flagged by the Ethics and Anti-Corruption Commission for alleged irregularities in their revenue collection systems involving private firms. The EACC has accused county officials of colluding with these firms to divert funds, resulting in significant financial losses.