By George Mponda
Karonga, January 24, Mana: The National Local Government Finance Committee (NLGFC) has advised officials at Karonga District Council to diversify their local revenue collection strategies by among others utilizing property rates.
Executive Director for NLGFC, Dr. Kondwani Santhe gave the advice while speaking at a budget hearing session for the 2025/26 fiscal year at Mount Soche Hotel in Blantyre.
"Property rates are a type of tax levied by local governments, such as district councils or municipalities, on properties within their jurisdiction. The revenue generated from property rates can be used to fund various local government services and infrastructure projects, such as waste management and sanitation, water, and sewage services, public safety and security and community development projects," Santhe said.
"Intensifying the use of property rates, as referred to in the Local Government Act, is crucial for local governments to generate a stable source of revenue. This revenue can then be channeled towards promoting local economic growth and development," he added.
The Executive Director went on to advise Karonga District Council to diversify local revenue collection instead of relying on donor projects and government funding saying the whole country is a planned area with potential to make councils to become financially stable and efficient in delivery of services to residents.
"Have your money, make your money and spend it on services you are unable to at the moment in the way you want in provision of quality services for the Karonga people," Santhe advised.
Meanwhile, Karonga District Council (KDC) presented plans to collect MK372,061,120.66 from local revenue in the 2025-26 fiscal year.
Acting Director of Finance for KDC, Joyce Chindenga said this while outlining a MK30, 358, 978, 500 billion for 2025/26 for Karonga District Council of which over MK372 million is intended to be raised from local revenue collection.
“We will employ multiple strategies to achieve these targeted outcomes. These will include engaging stakeholders in joint business license campaigns, involving political leaders such as Members of Parliament and Councillors, to minimize issues of political interference in revenue collection.
"Additionally, we plan to recruit an Assistant Internal Auditor to strengthen our internal controls. We will also regularly update our business register to ensure all new businesses are registered.
“Furthermore, we will hold intensive sensitization meetings with market committees, empowering them to support progress and development by actively participating in revenue collection campaigns. This increased revenue will enable us to provide quality services to the residents of Karonga,” said Chindenga.