The Meru County government is seeking the services of debt collectors to raise more than Sh830 million of uncollected revenue even as its annual proceeds crossed the Sh1.5 billion mark in May.
Meru Finance executive Monica Kathono said the county has accumulated old debts which have continued to slow revenue growth.
According to the latest report by the Controller of Budget, the outstanding revenue arrears comprise Sh3.53 million for house and stalls rent, Sh766.99 million for land rates, and Sh60.41 million for plot rent.
“The auditor general and the Senate Public Accounts Committee have severally queried the accumulation of old debts in the county. This is why we are now looking for a debt collector to support the county revenue board. The Senate has been calling for the scrapping of the revenue board because of low collections,” Kathono said.
She said while the county’s own source revenue has surpassed Sh1.5 billion, challenges in collection of land rates had curtailed the race towards a Sh2 billion annual revenue.
As at May 31, the county collected Sh1.1 billion from hospitals’ Facility Improvement Fund (FIF) and Sh401 million from other revenue sources.
The county collected Sh1.15 billion in the 2024/2025 financial year up from Sh961 million in the previous year.
In the last one year, the county has been tightening loopholes to attain the assessed revenue potential of Sh3.7 billion.
Last year, Governor Isaac Mutuma sought the consultancy services of Kenya Revenue Authority Chairman Ndiritu Muriithi in bid to increase its local revenue.
Murithi, through his private consultancy firm, Ecoapp Capital, is helping the county identify new streams, revamp the existing revenue systems and enhance service delivery.
In the Agriculture, Livestock, and Fisheries department, the county is targeting regulatory fees, inspection and compliance charges, livestock movement permits, artificial insemination services, agricultural training programs, as well as housing and farm services.
The Roads, Transport, and Energy department is also diagnosing its revenue sources with focus on underutilized cabro paved sections along major highways.
On the other hand, the Trade, Tourism, and Cooperatives department is targeting the establishment of a metrology lab and boda boda Saccos as new avenues of revenue generation.
The department is also considering development and promotion of tourism products by reviving existing attractions and creating unique visitor experiences.
Meru is also banking on its strong cooperative presence for comprehensive mapping of businesses for predictable revenue collection.
