Nairobi county revenue hits Sh4.82 billion as digitisation boosts collections

Building permits and parking fees were among the top revenue-generating streams for Nairobi City County in the first half of the current financial year, pushing total collections to Sh4.82 billion.

According to the Controller of Budget’s implementation report, the revenue surge is attributed to digitisation and improved collection strategies, marking an increase from the Sh3.81 billion recorded during the same period last year.

Governor Johnson Sakaja lauded the progress, citing streamlined revenue collection systems as a key driver of the increase.

“The digitisation of revenue streams and the elimination of inefficiencies have significantly boosted our collections. We are committed to ensuring accountability and maximising revenue potential for better service delivery,” he said.

Building permits emerged as the highest revenue-generating stream, bringing in Sh966 million, followed by parking fees, which contributed Sh860 million. Other revenue streams included land rates (Sh338 million), unified business permits (Sh603 million), billboards (Sh315 million), house rents (Sh294 million), food handlers’ certificates (Sh41 million) and market fees (Sh107 million).

However, the report also highlighted a notable decline in some revenue streams. Fire inspection certificates, for instance, plummeted from Sh39 million to Sh1.5 million, while land rates and tire inspection certificates also recorded drops.

Explaining the decline, Nairobi County Chief Officer for Revenue Administration, Tiras Njoroge, attributed it to changes in policy regarding land rate waivers.

“In previous years, waivers were granted, but this led to lower compliance within the legally stipulated period. We are now enforcing penalties through measures such as property clamping and auctioning for defaulters,” Njoroge said.

The Nairobi Pay digital platform also continues to be instrumental in enhancing revenue collection. In the 2023/2024 financial year, the county generated Sh12.8 billion, the highest own-source revenue among all 47 counties. Despite falling short of its ambitious Sh19.9 billion target, the county administration remains focused on meeting its Sh21.06 billion goal for the current financial year.

To further boost collections, the county government said it has expanded its customer service centers and intensified public awareness campaigns.

“We are consolidating all charges across revenue streams to enhance transparency. Additionally, we are encouraging Nairobi residents to make payments digitally from the comfort of their homes. New service centers have also been established in Dandora, Ruai, and Umoja 1 in Embakasi West to improve accessibility,” Njoroge said.

The county government added that it opted not to introduce a new finance bill for 2024, instead focusing on optimising existing revenue collection mechanisms.

With continued digitisation and enforcement strategies, City Hall indicated that it is optimistic about meeting its financial targets and improving service delivery to residents.

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