Safaricom’s Cashless System Boosts Revenue Collection In Counties

Safaricom ‘s  cashless systems adopted by county governments have drastically reduced  leakages and boosted collection  of  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 forty three counties in the roll out of   cashless payment systems and seventeen of them 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,” she added.

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 seventeen  counties  which  have  successfully  put in  place  end to end  systems include :  Uasin  Gishu, Kiambu, Kajiado, Nairobi, Nyeri, Laikipia, Nakuru, Mombasa, Kwale, Vihiga, Kisumu, Taita Taveta, Kitui, Makueni, Kericho, Kilifi and Nandi.