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The Kisumu government set up a cashless collection system to reach its annual target of 5 billion shillings.
The county is struggling to collect 1 billion shillings a year for five years.
Finance Director Nerry Achar stated that Strathmore University and the Cooperative Bank were contracted to raise revenue after the River Bank contract expires.
He said that the new system will fill the gaps.
He acknowledged that the introduction of the new system resulted in a significant drop in revenue, which represents about 50% of normal daily revenues
. He said, however, that the decline was expected with the transition, adding that the change was necessary.
Achar appeased fears that the county is losing revenue.
"Kisumu has been about 1 billion shillings a year for the past five years, and with the new system we think that Kisumu can collect between 5 billion and 7 billion shillings a year."
losses to "normal technical difficulties expected in any transition" and badures residents that problems are solved
The Finance Department expects to recover losses once the new system is stabilized.
The Chief Financial Officer expressed his confidence that other collections will be recorded and cited by the National Bureau of Statistics of Kenya
knbs research
According to research, Kisumu received only out of a population of 40,000, despite the revenue potential of 197,000 people.
"With the new system, the county will capture areas that we have not covered such as land rates and advertising.We are optimistic that the county will be able to collect more than 300 million shillings per month, "said Achar.
The system is mobile and merchants will use their phones to make payments while those without a phone will be helped by supervisors with printers to process
It also includes a geolocation feature that will provide merchants with phone numbers. Unique identification for easy tracking.
Poor revenue collection was largely blamed on the corruption of officials in the revenue office and system cartels.
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