Machakos County lauded for digitized revenue gains

The Senate Standing Committee on Information, Communication and Technology (ICT) has commended Machakos County for its successful automation of revenue and financial management systems, which have significantly boosted local income.

During an oversight visit led by Committee Chairperson Senator Allan Kiprotich Chesang (Trans Nzoia), the senators praised Governor Wavinya Ndeti for driving substantial reforms that have seen hospital revenue grow from just Ksh30 million before digitisation to Ksh775 million this year.

“Governor, you have shown commendable progress in closing loopholes and boosting revenue,” said Senator Chesang. “How sustainable are these gains, and what measures are you taking to ensure transparency across all departments?”

Governor Ndeti attributed the revenue transformation to robust ICT integration and accountability reforms. “We are fully committed to sustaining these gains. By consolidating over 200 paybill numbers into just four, and linking our health, licensing, and land systems to IFMIS, we ensure every shilling collected is traceable. Audit trails allow us to quickly identify and address any misuse,” she stated.

Senator Samson Cherargei (Nandi) raised concerns over the delayed release of funds from SHA and the National Hospital Insurance Fund (NHIF), noting that Machakos is owed approximately Sh500 million by SHA and a further Sh254 million in NHIF arrears.

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However, the Committee also raised pressing concerns about delayed reimbursements from the Social Health Authority (SHA) and lingering revenue loopholes.

Governor Ndeti acknowledged that the delays were severely affecting service delivery. “The burden is heavy. We continue to provide healthcare services daily, yet these funds are not released on time. We support an audit of SHA because counties cannot sustain health services while waiting for reimbursements that should be automatic.”

Nominated Senator Hezena Lemaletian questioned the county’s preparedness for cybersecurity threats and system failures. “Are your hospital and revenue systems fully integrated with IFMIS, and how resilient are they against cyber threats and power outages?”

The County ICT Director confirmed the systems’ integration with IFMIS, noting that backup servers and offline functionality are in place. “We conduct regular security audits and have safeguards against data loss or hacking.”

Governor Ndeti, an IT professional, assured the Committee of strong internal controls. “Every login is tracked by IP address. Any fraudulent attempt is immediately flagged and investigated.”

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Senator Cherargei also pressed the county on previously reported loopholes, including over 200 paybill numbers and more than 20 commercial bank accounts operating outside the main revenue account.

The Chief Officer for Finance confirmed these loopholes have been addressed. “We’ve reduced the paybills to four and swept funds from dormant accounts into the County Revenue Fund. We now operate a single revenue account.”

Governor Ndeti reiterated her administration’s zero-tolerance policy on fraud. “There is no compromise on accountability. Any officer found colluding in fraud is suspended and surcharged immediately. The Ethics and Anti-Corruption Commission is already investigating past cases.”

With hospital revenue increasing more than twentyfold following the automation drive, Machakos County is emerging as a national model for digitised revenue collection and fiscal transparency. The Senate ICT Committee urged other counties to emulate Machakos’ approach while calling for urgent reforms to ensure timely reimbursements from national health agencies.

By Obegi Malack

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