Kiambu County Governor Kimani Wamatangi revealed on Tuesday, July 30, that the county lost Ksh10 billion in revenue collections over the past eight years.
Appearing before the Senate's County Public Accounts Committee (CPAC) on Tuesday, Wamatangi outlined how three firms, contracted by his predecessors, allegedly interfered with revenue collection systems, resulting in significant financial losses.
The Senate watchdog committee, chaired by Homa Bay Senator Moses Kajwang’, called for the Ethics and Anti-Corruption Commission (EACC) to investigate the matter.
Auditor-General Nancy Gathungu had previously raised concerns about the involvement of the firms under the administrations of former governors William Kabogo, Ferdinand Waititu, and James Nyoro.
Governor Wamatangi disclosed that the firms allegedly signed opaque agreements with the county, resulting in the county not owning the systems it paid for. “The systems were not intended to help the county collect revenue but to help the owners siphon money. That is my conviction,” he stated.
He further revealed that the systems were deliberately calibrated to provide inaccurate results. “We tested the system at Thika slaughterhouse with a Ksh20,000 transaction. The system only reported Ksh16,000 after a six-hour delay,” he asserted.
This manipulation led to the county failing to meet its revenue targets, collecting between Ksh2.8 billion and Ksh3.1 billion, despite having the potential to realise Ksh13.5 billion annually, according to the Commission on Revenue Allocation.
Wamatangi noted that 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, minimising human interaction with money,” he said.
Senator Kajwang’ emphasised 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.”
Nandi Senator Samson Cherargei called for the owners of the three firms to be summoned for questioning. “It seems like a well-organised fraud carried out since 2014 until Governor Wamatangi terminated the contracts,” he stated.
“If there are culpable officers within your administration, they should be surcharged to refund the lost money.”
Governor Wamatangi 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.
The Senate committee vowed to keep a close watch on the investigation and ensure accountability for the massive revenue loss.
