The National Treasury has unveiled draft regulations that could transform how counties collect and manage their own-source revenue by introducing a centralised digital system accessible to key oversight bodies.

Published this week, the public finance management (integrated county revenue management system) regulations, 2025 propose a unified platform for all 47 counties to manage their revenue collection.

The aim is to improve transparency, tighten controls, and eliminate loopholes in current systems used by counties.

According to the proposals, the Commission on Revenue Allocation (CRA) and the Controller of Budget (CoB) will be granted indirect access to reports generated by county governments through the new platform.

These reports, approved by the county executive committee member, will inform decisions on revenue allocation and budget implementation.

“The Commission on Revenue Allocation (CRA) shall have access to reports approved by the county executive committee member generated by the system to monitor revenue generation across counties and advise the national and county governments on revenue allocation,” the regulations state.

The Controller of Budget will also use the data to offer guidance on how budgets are executed across counties. “The Controller of Budget shall have access to reports approved by the county executive committee member generated by the system to monitor revenue generation across counties and advise on budget implementation,” the proposal says.

In addition, the Auditor-General will have authority to access the platform and conduct audits to ensure that revenue collection is done within legal parameters.

The integrated system is expected to automate the entire revenue process — from collection to reporting — and support multiple payment options including mobile and bank transactions. It will also have built-in audit trails and secure record-keeping functions to support accountability.

Currently, counties operate their own revenue systems, which Treasury says has led to double taxation of businesses working across county borders and opened the door for misuse of funds due to weak oversight.

CRA plays a key role in advising how revenue collected nationally is shared among all government levels, while the CoB authorises and tracks the use of public funds to ensure they are used for intended purposes.