8 March 2019

East Africa: Cashless System Boosts Up to 30 Percent Revenue Collection in Counties

Safaricom has affirmed that cashless systems adopted by county governments have diminished leakages and boosted revenues collection.

Safaricom, the platinum sponsor of this year's devolution conference hosted in Kirinyaga County, noted that revenue has gone up by 30 percent since the inception of devolution system, what has made it easier for citizens to pay dues to the county governments while simultaneously enhancing the counties' financial management allowing them to plan, control and monitor their finances.

"As part of our vision to help drive a digital-first economy, we have partnered with 43 counties to enable cashless payment systems and out of the 43 counties, 17 have integrated their systems end to end," said Rita Okuthe, Chief Enterprise Officer, Safaricom.

Okuthe was speaking at the Sixth Annual Devolution Conference in Kirinyaga University. "In many of the counties that we have helped implement the cashless systems, revenues have gone up by up to three times," she added.

Kiambu is one of the counties that were first to adopt the cashless system to reduce the pilferage that characterises cash revenue collection and also improve convenience for clients, residents and visitors.

"Services like parking fee payments can now be done from as early as 5am what could be done only from 7am previously. This has increased convenience for clients as they do not get delayed paying for services," said Samuel Karanja, who is in charge of Information, Communication and Technology.

The collection system is backed by an Enterprise Resource Planning (ERP) system that is used for reporting as the payments go into a Paybill, and then through Real-Time Settlement (RTS) into the bank account.

The county runs the ERP, which is integrated into the M-PESA system, enabling the money to go straight to the bank.

The 17 counties that have employed end to end are; Usain Gishu, Kiambu, Kajiado, Nairobi, Nyeri, Laikipia, Nakuru, Mombasa, Kwale, Vihiga, Kisumu, Taita Taveta, Kitui, Makueni, Kericho, Kilifi and Nandi.

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