NAIROBI, Kenya, Feb 8 — Nyeri Governor Mutahi Kahiga was on Wednesday tasked to explain why the County failed to reach its Sh1 billion own-source revenue for Financial Year 2019-2020.
Kahiga stated that the County had not integrated its systems with the customers hence the deficit.
He spoke while appearing before the Senate County Public Accounts and Investments Committee to respond to queries raised by the Auditor General.
“In the financial year 2019-2020 the total revenue reported in the audited financial statements amounted to Sh656,628,153 however the revenue submitted to the controller of budget amounted to Sh664,859,880,” Kahiga told the committee.
“The difference of Sh8,231,727 was due to revenue that was banked in the previous financial year 2018-2019 and receipted in the financial year 2019-2020,” he went on .
He also told the committee system hitches have hampered revenue mobilization efforts.
“Some money which was collected did not reflect in the financial documents, but we have since reconciled with the office of the auditor general.”
High ceiling
An audit report indicated the county only collected Sh664.9 million during the year under review.
“The statement of receipts and payments reflects county own generated receipts of Sh656,628,153 for the year ended 30 June 2020, which is at variance with an amount of Sh664,859,880 indicated in the Annual Report of the Controller of Budget. The difference of Sh8,231,727 has not been reconciled,” a part of the report read.
The report read: “Further, revenue receipts and bank statements for Karatina Hospital were not provided for audit verification.”
It added: “Consequently, the accuracy and completeness of the county own generated receipts of Sh656,628,153 for the year ended 30 June 2020 could not be confirmed.”
Senators led by the Committee Chairperson Moses Kajwang also sought to understand why Sh937,304 collected as revenue from Nyeri Provincial, Mt Kenya and Mukurweini hospitals was not banked.
Health services
“Nyeri pay money when they want medical services and that money cannot be found by the auditor general? is this fair to the residents of Nyeri County?” Kajwang.
Senators further cautioned Governors against over-estimating their own-source revenue collection due to perennial failure to meet set targets.
Nyandarua Senator John Methu said overestimation is what is leading to high pending bills at the counties.
“This over estimating is clearly the root cause of the high pending bills being experienced in all our counties and the more things change, the more they remain the same,” said Methu.
His sentiments were backed by Busia and Homabay counterparts Okiya Omtata and Moses Kajwang.
“What criteria do you use when you are making your estimation? What informs it? Are they informed estimates or blind estimates?
Is there a scientific method that is used so that if that target is below the estimated own source revenue; then there can be a scientific way of explaining it,” Omtatah said.
