Nairobi revenue surges to Sh4.8bn in first half of FY2024-25
October saw the highest monthly revenue at Sh933.2 million, a sharp increase from Sh526 million collected in October 2023.
Nairobi County has recorded a Sh426 million increase in revenue collection for the first half of the Financial Year 2024-2025, bringing in Sh4.8 billion compared to Sh4.2 billion during the same period in the previous year.
Data from the county's finance department indicates that the Sakaja-led administration collected Sh4,815,106,845 billion between July and December 2024, a significant improvement from the Sh4,217,055,247 billion recorded during the same months in FY2023-2024.
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However, not all revenue streams recorded growth.
The data revealed that revenue collection was higher in the second quarter of the financial year, with Sh2,550,783,770 billion collected between October and December, up from Sh2,264,323,076 billion in the first quarter.
October saw the highest monthly revenue at Sh933.2 million, a sharp increase from Sh526 million collected in October 2023.
However, December recorded the lowest revenue for the period, with Sh600.89 million collected, down from Sh1,063,810,895 billion in December 2023.
Revenue streams
A closer look at the revenue streams shows that land rates brought in Sh338,438,477 million while parking fees contributed Sh860,313,917 million.
Revenue from the Unified Business Permit stood at Sh603,243,049 million, and plans and inspections generated Sh966,241,586 million.
Other key contributors included billboard and advertisement fees (Sh315,679,195), house rents (Sh294,144,250), and markets (Sh107,676,057).
Hospitals in the county posted Sh736,857,781 million in revenue, an increase from the previous year, while the Nairobi Funeral Home recorded a decline, bringing in Sh11,907,830 million.
Land rates and parking revenue were higher in the first quarter at Sh196,074,592 million and Sh434,394,048 million respectively, but both declined slightly in the second quarter.
In contrast, house rents rose from Sh111,107,698 in the first quarter to Sh183,036,552 in the second quarter.
Chief Officer for Revenue, Tirus Njoroge, attributed the decline in land rates revenue to policy changes regarding 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, " he explained.
" We are now enforcing those penalties accrued in various ways, including an operation to clamp down on properties that have not paid rates and auction those that have been notorious and failed to pay rates over a long period," Njoroge added.
Governor Johnson Sakaja-led administration introduced a Unified Business Permit to simplify the payment process for businesses.
"We have prepared and are publishing the consolidated fees cutting across all revenue charges and Finance Acts to promote awareness of our charges. This is part of the governor's strategy of eliminating revenue leakages by ensuring a well-informed citizenry," Njoroge added.
Additionally, the county has expanded service centres in areas such as Dandora, Ruai, and Umoja 1 to bring services closer to residents.
In the last financial year ending June 2024, the county collected Sh12.8 billion in revenue, falling short of the Sh20.06 billion target.
For the current financial year, the county aims to raise Sh21.06 billion to support its Sh43.56 billion budget.
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