Nairobi City County government has recorded a revenue increase of Sh1bn in its internal revenue for the first half of the financial year 2024/2025 due to digitisation and increased revenue mobilisation.
According to the Controller of Budget implementation report, City Hall has raised Sh4.82 billion in revenue between the months of July to December 2024 as compared to Sh3.81 billion during the same period in the financial year 2023/2024.
Nairobi Governor Johnson Sakaja attributed this success to the digitisation of revenue streams and the reduction of inefficiencies in the collection process.
Building permits recorded the highest revenue of Sh966 million followed by parking fees which generated a revenue of Sh860 million.
Others include fire inspection certificates (Sh1.5 million), land rates (Sh338 million), Unified business permits (Sh603 million), hospitals (Sh15 million), bill boards (Sh315 million), house rents (Sh294 million), food handlers’ certificates (Sh41 million), markets (Sh107 million), liquor board (Sh149 million), Nairobi funeral home (Sh15 million) and other incomes (Sh234 million).
During the period under review, a section of revenue streams such as land rates, fire inspection certificates and food handlers’ certificates recorded a big drop.
Nairobi City County Chief Officer for Revenue Administration Tiras Njoroge however explained that the drop in revenue on land rates is due to the change in policy on the issuance of waivers.
“While waivers on land rates have been issued in previous financial years, the result is often reducing compliance within the legally stipulated period of January - March. We are now enforcing on those penalties accrued in various ways including an operation to clamp down properties that have not paid rates and auction those that have been notorious and failed to pay rates over a long period,” Mr Njoroge told Nation.Africa.
Nairobi City County government relies on Nairobi Pay digital platform to raise its revenue. The implementation of the digital systems has led to notable improvements in revenue collection.
In the 2023–2024 financial year, Nairobi County achieved a record high revenue of Sh12.8 billion, marking the highest own-source revenue among Kenya's 47 counties.
The county administration had set specific targets for various revenue streams, including Sh5.6 billion for rates, Sh3 billion each for single business permits and parking fees, Sh1.8 billion for building permits, and Sh1.2 billion for billboards and advertisements.
While the total revenue fell short of the ambitious target of Sh19.9 billion, the Sh12.8 billion collected still represents a significant improvement over previous years.
Its revenue target in the current financial year is Sh21.06 billion which will be used to partly finance its budget of Sh43.56 billion.
The county government is capitalizing on digitization of its revenue collection streams and establishment of customer service centres and increased awareness to achieve its revenue targets.
“We have prepared and are publishing the consolidated fees and charges cutting across all revenue charges and Finance Acts to promote awareness on our charges. We have also digitized revenue streams and are continuing to encourage Nairobians to pay for services from the comfort of their homes. We have also increased devolution of our service centres with one in Dandora, another in Ruai and completing one in Umoja 1 Embakasi West to reach Nairobians,” Mr Njoroge added.
The county government did not introduce a new finance bill for the year 2024 to mobilize its resources
