Kenya’s E-Citizen Push Nets Record Sh65bn in Non-Tax Revenue

Kenya’s non-tax revenue collections surged to a record Sh65.32 billion in the first quarter of the current financial year, marking a 183 percent increase from the previous year. This significant growth is attributed to President William Ruto’s directive to parastatal chiefs to surrender surplus cash and the increased digitalization of government services through the e-Citizen platform.

The Treasury official noted that the
record inflows reflect the performance of receipts from government services, surplus funds from semi-autonomous government agencies (SAGAS), and dividend income.

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This has followed the step by the government to push harder digitization of its services to the e-Citizen portal to improve efficiency and seal loopholes for corruption. Around 16,000 government services have been onboarded to the platform, streamlining access to services and official payments into a single-pay bill.

Key state departments and agencies, such as the Immigration and Citizen Services Department, Kenya Revenue Authority, Business Registration Service, and others, have moved most of their services to e-Citizen. Treasury Cabinet Secretary John Mbadi stated that the single payment bill has worked well, improved transaction visibility, and helped stop leakages.

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While the government’s coffers have swelled in the short term, the long-term consequences for state corporations are potentially dire. Many of these entities now grapple with a financial stranglehold, leading to delayed salaries and missed payments for critical employee deductions such as loans, insurance premiums and other statutory deductions.

This fiscal Squeeze not only jeopardizes the welfare of thousands of public sector workers but also threatens to trigger a brain drain as skilled professionals seek greener pastures. Moreover, the severe limitation on reinvestment capacity could lead to a downward spiral of deteriorating infrastructure, outdated technology, and diminished service quality.

Members of Parliament have also pressured state agencies to account for the projected Sh400 billion ministerial appropriations-in-aid (A-i-A) for the current financial year ending June 2025. A-i-A receipts are revenues collected by various government ministries, departments, and agencies when discharging services and spent at source after appropriation by lawmakers.

These receipts include charges on services such as registration of persons (national IDs and passports), transportation permits (driving licenses), land titling, and business registrations.