Looting Spree at Homa Bay County Revenue Office Through M-Pesa Reversals

Hot topics Health Tech Travel Climate change Lifestyle InstagramLinkedinX Finance

A section of unscrupulous officers at the Homa Bay County Revenue Office could have designed a scheme to defraud the county of millions of shillings in revenue through M-Pesa payment reversals.

In a letter by a community-based organisation, Interface Community Help Desk, to the CEC for Finance, the organisation said information and documentary material brought to its attention revealed serious allegations concerning the management of county revenue, particularly the handling of M-Pesa payments, revenue reversals and possible diversion of payments within the Revenue Department.

“We have obtained a document titled ‘Homa Bay County M-Pesa Playbill Reversals 0434343’, which contains transaction dates, names or identities of persons making payments, M-Pesa transaction codes, amounts and the names appearing under the Approver and Initiator columns,” read the letter.

CEC for Finance, Mr Solomon Obiero, forwarded the letter to his staff, who responded and wrote:

“Thanks, Waziri, for sharing. On a quick look, it appears like a prepared Excel sheet converted to PDF. Allow me some time to get to the portal and analyse. I will give you a report afterwards on this.

Good afternoon, Chairman. For that report, we will need the following: all system users with their rights, M-Pesa statements for 2025/2026/2027, the M-Pesa reversal workflow and revenue bank statements for 2026/2027.”

Chairman of the group, Evans Gor Oloo, said the attached schedule indicated a total of Sh1,466,275 in recorded reversal transactions.

“These entries raise serious questions about the internal financial controls, authorisation procedures, reconciliation mechanisms and accountability structures governing county revenue collection,” Oloo said.

Oloo expressed concern over allegations that a senior officer in the Revenue Department was pressuring certain business operators and members of the public to make payments in cash or through personal mobile telephone numbers rather than through officially designated county revenue collection channels.

“Further allegations indicate that some payments were subsequently reversed after customers had obtained payment confirmation or valid county receipts, raising questions about whether the corresponding revenue was properly retained and accounted for by the County Government,” he wrote.

Personal M-Pesa Transactions and Reversals

Oloo said an examination of the attached schedule had identified multiple transactions involving persons whose names appeared in connection with the senior officer and other officers within the Revenue Department.

“We are informed that approximately 14 transactions have been identified as potentially involving payments through the senior officer’s personal telephone number within a two-month period,” read the letter.

Oloo wanted the CEC, Mr Solomon Obiero, to establish whether the officer was authorised to receive county revenue through any personal M-Pesa account or telephone number and whether such transactions were subsequently subjected to official reconciliation and accounting procedures.

Oloo said there were allegations that certain customers and business operators were irregularly pressured to make cash payments or use alternative personal M-Pesa payment channels when paying for county services.

“Of particular concern are allegations that customers were required to obtain proof of payment and valid permits before their transactions were subsequently subjected to reversals,” he wrote.

Oloo said that, for accountability and independent reconciliation, they had requested the CEC to investigate and provide certified documentary explanations concerning some of the specific transactions.

Oloo also alleged that the Revenue Department currently lacked a properly designated accountant responsible for M-Pesa payment reconciliations.

“We have been informed that an accountant was removed, dismissed or otherwise ceased performing the reconciliation responsibilities previously assigned to him,” he wrote.

He said they were particularly concerned about the absence of independent reconciliation controls, creating opportunities for revenue leakages, manipulation of records and abuse of administrative authority.

He said there were claims that changes in the staffing and operational arrangements within the Revenue Department might have created weaknesses in the internal financial control system.

“We request your office to establish whether the removal or reassignment of the previous accountant was followed by a formal handover, appointment of a replacement and designation of officers responsible for revenue reconciliation,” he wrote.

6. REQUEST FOR ACCESS TO INFORMATION AND OFFICIAL DOCUMENTS

Oloo requested to be provided with a complete schedule of all M-Pesa payments received through Homa Bay County Playbill Number 0434343 during the 2025/2026 and 2026/2027 financial years, up to the date of the response.

“A complete schedule of all reversals processed through the county revenue collection system during the same period,” he wrote.

“All relevant M-Pesa transaction records and reversal confirmations be preserved, and the County Revenue Management System audit trails and electronic records be secured against unauthorised alteration or deletion,” he wrote.

Western Insight Where voices unite, stories flourish, and community thrives through open dialogue and meaningful connections.

Get important news delivered directly to your inbox and stay connected!