The treasurer Margaret Osili said the deficit arising from poor revenue collection was hampering the council’s operations. She said the council was only collecting 60 per cent of the revenue due because of lack of an enforceable law on debt repayment.
“The council has no structured way and plan of tracking down the defaulters and this has worked to its disadvantage as debts continue to increase,” Ms Osili said.
The Council’s 2012/ 13 budget is Sh1.1 billion, most of it drawn from the Local Authorities Transfer Fund (LATF). Speaking during a heads of department meeting with the Kisumu County Governor-elect Jack Ranguma, she called for the hiring of debt collectors to track the defaulters.
She said the Kenya Revenue Authority could also be engaged to collect revenues on behalf of the council.
“We have to adopt a smart way of debt collection in order to meet the budget needs,” she said.
Mr Ranguma told council workers that they would be absorbed in the county governments and promised to improve infrastructure and stimulate growth in tourism and agriculture.
-Business Daily
