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Sakaja scraps cash revenue collection, shifts to online payment

A “No Cash” policy has been implemented at City Hall by Nairobi Governor Johnson Sakaja.

Sakaja advised city dwellers not to use cash to obtain county services.

“I would like to inform Nairobians that going forward, we shall not accept any cash payment,” he stated on Wednesday.

In addition, the governor asked Nairobians to report any county employees who seek for cash payments, claiming that this is not the practice of any official City Hall employees.

“If any of my Revenue team members ask for payment in cash, please report them to 020 2224281, and we will take immediate action,” Sakaja said.

The governor recommended revenue payers seeking additional explanation to visit the NairobiPay e-service Portal (www.nairobiservices.go.ke), the customer service center offices located in the City Hall Annexe, or any Sub-county finance offices.

Additionally, he informed the locals that payments made using the USSD code *647# are sent to either Equity Bank (Account Number: 1770279910476) or Cooperative Bank (Account Number: 01141709410000) for Nairobi City County Revenue Collection.

It was discovered last month that because certain officials continue to collect taxes and fees in cash, the county administration may be missing millions of shillings in revenue from city markets.

Some officers continue to collect income in cash instead of assisting residents in using digital systems, according to testimony given before a special committee tasked with looking into the causes of the revenue shortage.

The team was informed that this behavior might be a major reason for the drop in revenue collection.

This came to light at a public meeting held at Charter Hall where several Nairobi market leaders testified before the committee about their concerns.

The committee, chaired by Makongeni MCA Peter Imwatok, was informed that this practice endures despite the provision of an electronic method for collecting revenue.

Nelson Githaiga, the chairman of Muthurwa Market, informed the ad hoc team that certain local county officers gather cash, transfer it to cell phones, and then wire it.

Determining the precise amount of money collected and sent to the county coffers is made more difficult by this approach.

The long-standing nature of this practice makes the tax-collecting system less transparent and efficient, which prevents the county from earning its full revenue potential.

“Some traders pay daily, like Sh50. The county officer is unable to check off each trader who pays via phone,” Githaiga clarified.

Joyce Mwangi, the director of City Market, informed the committee that even after working for the county for a long time, she still has trouble logging into the revenue collection system.

“We cannot guarantee that we can achieve the daily target of Sh1.5 million due to the challenges we are having with the revenue collection system,” the spokesperson stated.

The director stated that she is unable to hold cops accountable since she does not have access to the system.

“What goes on within the system is unknown to me,” Mwangi remarked.

In 2017, Nairobi County began implementing a cashless system under the leadership of former Governor Mike Sonko.

With the change, there was no longer a cash office at City Hall, and all payments were made electronically.

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