mpesa paybill

The non-tax revenue collection by state agencies experienced substantial growth, surging by Sh8.6 billion to reach a noteworthy total of Sh92.8 billion. 

This remarkable 10.3 percent increase, compared to the corresponding period in the previous year when collections stood at Sh84.2 billion, can be attributed to the strategic government initiative introduced in August 2023.

In an effort to track every government service that is paid for, the Kenyan government, through the treasury, implemented a transformative measure, directing all ministries, counties, departments, and agencies to consolidate their payment channels into a single digital platform. 

The linchpin of this initiative was the introduction of the M-Pesa Paybill, identified by the unique number 222222. The directive, effective from August 10, 2023, mandated the closure of all other pay bill numbers, emphasizing the government’s commitment to optimizing and modernizing revenue collection processes.

This consolidation of payment channels not only streamlined financial transactions related to government services but also facilitated a more transparent and accountable system.

President William Ruto commended the transparent and secure administration of all revenues during his Jamhuri Day speech, drawing attention to the notable surge in non-tax revenues.

“We are, therefore, taking strong measures to ensure that all revenue is administered transparently, efficiently, and in a secure manner. One of our best interventions is the use of digital technology and the migration of government revenue collection to a single pay bill,” noted president ruto on Tuesday.

“Since this measure was implemented, we have witnessed a significant rise in total revenues collected. Besides enhancing revenue collection, digitisation has eliminated revenue leakages through corruption and theft.”

This substantial increase in revenue is anticipated to contribute significantly to fiscal stability, enabling the government to address budgetary needs, reduce deficits, and support various economic development initiatives. 

The funds may be directed towards investments in public services, infrastructure, and social programs, potentially leading to job creation and improved overall well-being for the population.

READ ALSO: BURN’s Green Revolution: Africa’s Carbon Credit Futures from Efficient Cook-Stoves

Furthermore, the surge in non-tax collections offers the government increased debt-servicing capacity, promoting a more sustainable debt profile. The positive economic impact extends to fostering private sector confidence, encouraging investments, and promoting economic diversification. 

This pivotal step not only streamlines financial transactions but also aligns with the national goal of digital transformation. Dr. Ruto, acknowledging the importance of this transition, extended the deadline, giving all State agencies until the end of this year to migrate to the e citizen platform. 

“It is important that we sustain this progress in promoting integrity, transparency, and efficiency in revenue management. And for this reason, I direct that all agencies observe the December 31 deadline to finalise the migration to the e citizen platform.”

The e citizen app serves as a central hub for various govt digital services, reflecting the government’s commitment to providing citizens with a unified and efficient digital experience.

Leave a Reply

Your email address will not be published. Required fields are marked *