Finance Minister, Onesmus Kuyu. Image source: Machakos County Assembly

The revenue collection system of the Machakos County Government has entered its third week of dysfunction, resulting in a significant loss of revenue from its own sources. Investigations by The Anchor reveal that the system—CFORMS—has either collapsed or ceased functioning due to internet downtime at the County Headquarters, where it is housed and managed under the supervision of Finance Minister Onesmus Muia Kuyu.

Citizens attempting to make payments for services such as building approvals and land rates are being turned away, as no invoices, official receipts, or licenses can be issued while the system is down.

Those urgently needing to proceed with payments are instructed to use the Pay Bill number and present the payment confirmation message as proof of payment. This workaround has opened the door to revenue leakage, with some staff and residents reportedly colluding to underpay official rates, taking advantage of the system’s failure.

The County Integrated Financial Operations Management System (CFORMS) was originally introduced to replace the Local Authority Integrated Financial Operations Management System (LAIFORMS). However, in June 2024, the county government acquired a new system, which has yet to be activated.

CFORMS operates under a framework where system operators earn 1.7% of all revenue collected through the platform. Investigations have uncovered that the new system’s provider will earn 6% of the monthly revenue, which is expected to result in a substantial loss for the county. Current estimates suggest that daily revenue losses range between KES 4 million and KES 10 million.

The identity of the new system’s provider and relevant documentation have been kept confidential, as the county continues to experience ongoing revenue leakage.

Finance Minister Kuyu did not respond to multiple calls. Meanwhile, Chief Officer for Revenue Collection Zipporah Mutunga was earlier removed from her position, and the role reassigned to Director of Revenue Collection Mr. Otieno Otieno.