How protests over Finance Bill hurt Nairobi’s daily revenue collections

City Hall, which houses the offices of the Nairobi Governor. (Photo: Handout)

By Maureen Kinyanjui
Wednesday, September 10, 2025

County records show fire inspection fees plunged by 90 per cent to Sh5.3 million, while market rates fell 11.6 per cent to Sh189.37 million.

Nairobi County experienced a sharp decline in collections from fire inspection fees, market rates, and parking as violent protests last year disrupted daily economic activity.

The unrest, which began in June over the Finance Bill, 2024, drove traders and motorists away, causing the largest drops in these revenue streams in recent years.

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County records show fire inspection fees plunged by 90 per cent to Sh5.3 million, while market rates fell 11.6 per cent to Sh189.37 million.

Parking fees dropped by four per cent to Sh1.89 billion. Traders at open markets and daily commuters bore the brunt of the disruptions as heightened safety concerns kept them away from business and public spaces.

Despite the shortfall in these areas, the county’s overall own-source revenue grew slightly to Sh13.26 billion in the year ending June 2025, up from Sh12.8 billion the previous year.

Revenue from house rent and stalls rose the most, increasing 51.2 per cent to Sh761.82 million. Fees from building approvals and business permits also grew, climbing 17.2 per cent to Sh2.57 billion and 7.4 per cent to Sh1.44 billion, respectively, helping offset the losses in other streams.

The June protests, led mainly by young people, opposed higher taxation measures under the Finance Bill, 2024.

The demonstrations, which began in Nairobi, later spread to other major towns, paralysing business operations across the country.

Daily-fee revenue streams, such as market and parking charges, were hit hardest since participation dropped dramatically during the riots.

The disturbances compounded long-standing challenges in Nairobi’s revenue collection. Since devolution in 2013, the county has struggled to meet its own-source revenue targets, often relying on allocations from the National Treasury.

Officials cite factors including corruption among county revenue staff, reliance on manual collection systems that lose millions daily, and overly ambitious revenue targets not grounded in studies.

Delayed disbursements from the National Treasury have also hindered county operations.

In several regions, employees went unpaid for months this financial year due to delays in receiving their equitable share of national revenue, highlighting the fragility of county finances amid both external shocks and systemic inefficiencies.