The Senate County Public Investment and Special Funds Committee has raised concerns over financial mismanagement at the Meru County Revenue Board.
Senators questioned Governor Isaac Mutuma over a lucrative contract with Craft Silicon Limited, citing discrepancies in revenue collection, unexplained expenditures, and mounting liabilities that have pushed the Board into a financial crisis.
During the session on Wednesday, Vihiga Senator Godfrey Osotsi questioned Mutuma over a contract with Craft Silicon Limited, a private firm tasked with collecting county revenue for a 4.8 percent commission.
Meru Governor Isaac Mutuma before the Senate County Public Investment and Special Funds Committee to answer questions on Meru County Revenue collection on February 18, 2026.PHOTO/Senate
“Governor, this whole arrangement looks fishy. We are seeing a situation where a private entity is making a killing while your Revenue Board is technically broke.
You are paying for services like USSD setups and maintenance fees that were not even in the original contract. This is a clear case of public funds being siphoned under the guise of technology,” Osotsi said.
The Senate committee, highlighting findings from the Auditor General’s report, noted significant discrepancies between the revenue reported by the Board and the amounts claimed by the service provider.
The report suggested that large sums of revenue might be missing or undisclosed, raising concerns over transparency and accountability in the management of public funds.
Senator George Mbugua also criticised the Governor over the evolving contract terms. “How can you have a contract where the terms keep changing to favour the vendor? You are paying millions for a system that cannot even give you accurate data. This is not just a management failure. It is a calculated risk to public funds,” he said.
The committee flagged a ‘going concern’ crisis at the Board, warning that it may not sustain operations. Its liabilities stand at 42.4 million shillings, exceeding assets, with the Board seemingly unable to balance revenue collection with operational costs.
Senators argued that Craft Silicon Limited continues to profit at the public’s expense, raising questions about oversight and fiscal governance.
Governor Isaac Mutuma sought to defend his administration’s handling of the matter. He presented an amended Act to demonstrate legal support for the Board and insisted, “The Board is funded by the County Treasury. We are in a position to meet our financial obligations. When we realized that maintenance fees were being charged outside the contract, we took steps to object to those payments.”
Despite the Governor’s defense, the committee remained unconvinced, scrutinising the role of the Chief Officer for Finance, who audit records showed had been absent from all Board meetings.
Instead, the officer sent a representative without a formal delegation letter, raising further concerns over accountability in the management of multi-million shilling contracts.
Additional scrutiny focused on a parallel system costing 2.8 million shillings, which only manages two types of revenue.
Senators described this expenditure as wasteful and unnecessary, questioning the justification for such spending. “Your answers are not satisfactory. You cannot explain the engagement with this service provider. You cannot explain why the board is failing. We are deferring this matter,” Osotsi declared.
The committee has asked Governor Mutuma to return on a later date with all relevant documentation, including the contract with Craft Silicon Limited and the parent Act establishing the Board.
These documents are to be submitted two weeks before the next meeting to allow for a thorough forensic review, signalling ongoing oversight of Meru County’s revenue management.
