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Kiambu County Loses Ksh10 Billion in Revenue Collection Scandal

CountyScandals
Reporter
Author: Reporter
2 min.read

Key Points

  • Alleged Fraud: Three firms contracted by Kiambu County government are suspected of siphoning over Ksh10 billion.
  • Senate Investigation: The Senate County Public Accounts Committee (CPAC) is investigating the matter.
  • Opaque Agreements: The involved firms, Kiambu Pay, County Pro, and Zizi, had unclear contracts with the county.
  • System Manipulation: The firms allegedly manipulated revenue collection systems to underreport income.
  • Significant Losses: Kiambu County potentially lost billions in revenue due to the fraud.
  • New System: The county has implemented a new system that has increased revenue collection.
  • Call for Investigation: Senator Moses Kajwang’ has urged the EACC to investigate the matter.
  • Lawsuit: The accused firms have sued the county for Ksh700 million.

The Senate County Public Accounts Committee (CPAC) has urged the Ethics and Anti-Corruption Commission (EACC) to investigate how three firms contracted by the Kiambu County government allegedly siphoned over Ksh10 billion between 2014 and 2022.

During a session chaired by Homa Bay Senator Moses Kajwang’, the committee reviewed audit reports for the financial years 2018 to 2022. These reports revealed that the firms—Kiambu Pay, County Pro, and Zizi—had opaque agreements with the county government to collect own-source revenue.Auditor-General Nancy Gathungu had previously raised concerns about these firms’ engagements by former governors William Kabogo (2013-2017), Ferdinand Waititu (2017-2020), and James Nyoro (2020-2022).

Kiambu Governor Kimani Wamatangi, appearing before the committee, disclosed that the county may have lost close to Ksh10 billion due to alleged interference with revenue collection systems by the three firms. He stated that the systems were faulty and intentionally calibrated to provide inaccurate results. “The systems were not intended to help the county collect revenue but to help the owners siphon money. That is my conviction,” Wamatangi asserted. He further revealed that despite the county paying for the systems, they remained the property of the contracted firms.

Governor Wamatangi provided an example of the system’s flaws, recounting a test at Thika slaughterhouse where a Ksh20,000 transaction was reported as Ksh16,000 after a six-hour delay. This manipulation led to the county failing to meet its revenue targets, collecting between Ksh2.8 billion and Ksh3.1 billion annually, despite having the potential to realize Ksh13.5 billion, according to the Commission on Revenue Allocation.

Since implementing a new system, the county’s internal revenue has nearly doubled, rising from Ksh2.9 billion to Ksh4.6 billion. “The new system belongs fully to the county and no one can switch it off or blackmail us again. It confirms transactions in real-time, minimizing human interaction with money,” Wamatangi said.

Senator Moses Kajwang’ emphasized the need for swift action by the EACC, stating, “Ksh10 billion is not pocket change. EACC must investigate this matter to serve justice to the people of Kiambu.” He added, “This is money stolen from hardworking citizens, traders, and small businesses. It is completely unacceptable.”

Governor Wamatangi also revealed that the three firms have taken the county government to court, demanding Ksh700 million in payments. “They have billed us from 2014 despite having a contract dated 2021. How can someone bill for services delivered seven years before the contract?” he questioned.

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