East Africa: Safaricom Says Cashless System Boosting Revenue Collection in Counties By Up to 30 Percent

Safaricom says that cashless systems adopted by county governments have diminished leakages and boosted revenues by up to 30 percent.

The systems have 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.

She was speaking at the sidelines of the Sixth Annual Devolution Conference at Kirinyaga University in Kirinyaga County. Safaricom is the platinum sponsor of this year's conference.

"In many of the counties that we have helped implement the cashless systems, revenues have gone up by up to three times," said Okuthe.

Kiambu County 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.

"Our records show that some clients pay for parking as early as 5 am. Before this, you could only pay after 7 am when the parking booths were open. Now our clients can conveniently pay for services without delays," 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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