Governors reject Treasury’s e-Citizen revenue plan

By Newsflash Team

A proposal by the National Treasury to implement a centralised system for collecting county-generated revenue has sparked backlash from governors, who see it as an assault on devolution and a ploy to exert undue control over county operations.

The proposed framework mirrors the national government’s e-Citizen platform and would be used to collect payments for services such as land rates, hospital fees, and parking charges—currently handled through individual systems adopted by each of the 47 counties.

If implemented, this would phase out the various digital revenue collection systems that county governments have independently procured.

With the Treasury eyeing a rollout in December, counties now face legal uncertainties tied to existing contracts with private vendors already managing their revenue systems.

Treasury defends centralisation, citing leakages

The contentious plan is under review by the Intergovernmental Budget and Economic Council (IBEC), but it has already stirred significant resistance. Several governors have expressed firm opposition, warning that they will not support a system they believe undermines constitutional autonomy.

National Treasury Cabinet Secretary John Mbadi outlined the proposed changes while appearing before the Senate Public Accounts Committee. He explained that the government intends to streamline revenue collection by establishing a unified system for all counties. According to Mr. Mbadi, discussions on this plan are ongoing at the IBEC level.

“We are proposing a single entity to handle all revenue collection for counties, similar to what exists at the national level,” Mbadi told the committee chaired by Homa Bay Senator Moses Kajwang’. “Modalities are being ironed out before the expected rollout in December.”

Mbadi said the initiative aims to eliminate revenue leakages, where some counties collect and spend money at the source while others under-report collections. He acknowledged the pushback from county leaders but remained optimistic that a consensus could be reached.

“Having 48 different systems handling revenue is inefficient,” he said. “The discussions are still ongoing, especially regarding who exactly will collect the funds and how the money will be remitted back to counties.”

To prepare for the transition, the Treasury has already contacted all 47 county governments, requesting comprehensive details on their current revenue collection frameworks—including vendor information and contract expiry timelines.

Governors warn of threat to devolution

But county bosses are pushing back.

Nyeri Governor Mutahi Kahiga, who serves as vice-chair of the Council of Governors (CoG), has rejected the plan outright. He accused the national government of attempting to curtail county autonomy and create unnecessary obstacles.

“This new system is designed to infringe on counties’ rights. It’s yet another bureaucratic hurdle aimed at slowing down devolution,” Kahiga said in an interview. “Just look at the current issues with e-Citizen—what assurances are they giving us?”

He further argued that counties are already burdened by delays in the disbursement of equitable revenue, and introducing another control mechanism will worsen service delivery at the grassroots level.

“Are we going to allow county governments to function independently, or will we continue to suffocate them?” he posed.

Makueni Governor Mutula Kilonzo Jr echoed similar sentiments, asserting that revenue collection is not the national government’s responsibility.

“The state is attempting to collect county funds and release them on its own terms. This is not about efficiency—it’s about control,” said Kilonzo. “It also opens the door for questionable procurement of another system that resembles e-Citizen. Yet the Constitution distinctly separates the two levels of government. This is not a unitary state.”

Mombasa Governor Abdulswamad Nassir also voiced his opposition, branding the proposal as a thinly veiled attempt to micromanage devolved units.

“This is not acceptable. We will not allow the national government to run counties by proxy,” Nassir said. “They can develop policies, set guidelines on minimum or maximum thresholds, but the responsibility for revenue collection must remain with county governments.”

According to credible sources within the CoG, the governors are now considering convening a special sitting to formally oppose the proposal, which they fear could set a dangerous precedent for centralised control over other devolved functions.