Investor Presentaiton

D.4.1 Nairobi county adopted hybrid model using e-payment system & on the ground physical agents to assist with increasing revenue collection Kenya Context AIROBI CITY COUNTY Inefficiency & inconvenience experienced in Nairobi's revenue collection Not all residents were paying fees E.g.: parking fees, permits Long queue system discouraged payment No accountability system existed Corruption due to lack of transparency What did Nairobi do? As part of broader ICT Transformation Programme, Nairobi adopted hybrid model to improve revenue collection for various public goods & services Epayment cash light system complemented with agent stalls • Enables uses to pay parking fees, vendors to pay market fees, etc... Accessible online & through agents with PoS¹ terminals Users can pay using M-money², debit cards, -30 partner banks and independent agent stalls spread across metropolis To ensure payment, enforcement team of officials deployed - Team carried POS terminal with camera, barcode reader, GPS tracker Barcode reader authenticates receipts & certificates issued upon payment Camera used for pictures of offenders-could be presented at court as evidence if they deny they were unavailable 1. Point of sale, 2. Mobile money, 3. 2013-2017, 4. As at 2017 Source: BCG Analysis Key successes Raised revenue collection by ~65%³ over a -3 year period Enabled revenue officers to check real-time updates from system & ensure amounts collected by all departments are accounted for • Helps with accountability & the challenge of transparency & fraud Previous corruption cost the city millions every year New system designed to ease payments • No need to stand in long queues Trained on the ground agents to help citizens with payments Revenue collected from diverse sectors & parking services have contributed the most (~88%)4, followed by land rates (~86%) 4 Learnings for Plateau State Ease revenue collection & consider introducing hybrid payment model Model that gives uses options to ease payments e.g E-payments for those who prefer to pay themselves Agent stalls spread across the city to cover main areas Complemented with on the ground agents equipped with good payment technology for those who don't have access Avoid methods which result in long queues and unaccountable process Build accountability into the payment system • • Ensure revenue officials are keeping track of payments by all departments Real time information updates & accountability checks could help Ensure credible 3rd party co. handles the technical part & avoid unnecessary changes in payment process if the current payment process works well Copyright 2019 by Boston Consulting Group. All rights reserved.

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