Private financial technology firms are under scrutiny over lucrative revenue automation contracts with county governments, as new findings reveal the systems have failed to deliver the promised efficiency and accountability.
A report by the Daily Nation indicates that despite counties spending millions of shillings on digital revenue collection platforms, they continue to collect less than Sh80 billion annually—far below the estimated Sh260 billion in own-source revenue potential.
The report attributes the shortfall to incomplete and poorly integrated automation systems that remain vulnerable to revenue leakages and inefficiencies.
Audits further reveal that some fintech vendors charge counties commissions of up to 15 per cent of total revenue collected, despite failing to fully automate key collection processes.
The findings have raised concerns over value for money, with critics calling for greater oversight of county revenue management systems and accountability from both service providers and county administrations.