Kiambu County Governor Reveals Ksh10 Billion Revenue Loss Due to Fraudulent Contracts
Kiambu County Governor Kimani Wamatangi announced on Tuesday, July 30, that the county experienced a Ksh10 billion shortfall in revenue collections over the last eight years.
Speaking before the Senate’s County Public Accounts Committee (CPAC), Wamatangi detailed how three firms, previously contracted by his predecessors, allegedly disrupted revenue collection systems, causing significant financial losses.
The Senate watchdog committee, led by Homa Bay Senator Moses Kajwang’, urged the Ethics and Anti-Corruption Commission (EACC) to investigate the issue.
Auditor-General Nancy Gathungu had earlier highlighted concerns about the involvement of these firms during the tenure of former governors William Kabogo, Ferdinand Waititu, and James Nyoro.
Governor Wamatangi disclosed that these firms allegedly entered into non-transparent agreements with the county, resulting in the county not owning the systems it paid for. “The systems were designed not to aid the county in collecting revenue but to help the owners siphon money. That is my belief,” he stated.
He also revealed that the systems were intentionally calibrated to produce 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 caused the county to miss its revenue targets, collecting between Ksh2.8 billion and Ksh3.1 billion, despite having the potential to generate Ksh13.5 billion annually, as estimated by the Commission on Revenue Allocation.
Wamatangi mentioned that after implementing a new system, the county’s internal revenue nearly doubled, increasing from Ksh2.9 billion to Ksh4.6 billion. “The new system is fully owned by the county, and no one can shut it down or extort us anymore. It verifies transactions in real-time, reducing human interaction with money,” he said.
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Senator Kajwang’ stressed the urgency for EACC to take swift action, stating, “Ksh10 billion is not a trivial amount. EACC must investigate this matter to deliver justice to the people of Kiambu.”
He added, “This money was stolen from hardworking citizens, traders, and small businesses. It is entirely unacceptable.”
Nandi Senator Samson Cherargei called for the owners of the three firms to be summoned for questioning. “It appears to be a well-organized fraud carried out since 2014 until Governor Wamatangi ended the contracts,” he stated.
“If there are responsible officers within your administration, they should be surcharged to refund the lost money.”
Governor Wamatangi revealed that the three firms have sued the county government, demanding Ksh700 million in payments.
“They have invoiced us since 2014 despite having a contract dated 2021. How can someone bill for services provided seven years before the contract?” he questioned.
The Senate committee pledged to closely monitor the investigation and ensure accountability for the significant revenue loss.
Kiambu County Governor Reveals Ksh10 Billion Revenue Loss Due to Fraudulent Contracts
