Mombasa County is under pressure to improve its own-source revenue as new parliamentary scrutiny exposes gaps in key collection systems.

The County Public Accounts Committee (CPAC) has urged the county executive to fix long-standing weaknesses in land rates, business permits, and cess collection that continue to drag performance.

According to a parliamentary report on Monday, June 8, 2026, the committee, which met at Bunge Tower in Nairobi, said Mombasa still relies on outdated systems that limit how much it can raise locally. A major concern is the valuation roll used to calculate land rates, which dates back to 1991 and no longer reflects current property values.

Governor Abdulswamad Sheriff Nassir told the committee that this gap has made it difficult for the county to meet its targets.

“The county’s valuation roll was prepared in 1991 and is therefore no longer fit for purpose given current economic and property market realities,” he said.

Land rates remain the biggest challenge in Mombasa County revenue collection. In the 2024/25 financial year, the county targeted Ksh1.4 billion but collected only Ksh883 million. Governor Nassir said enforcement problems and legal disputes slowed progress.

“This was largely due to enforcement challenges,” he told the committee.

CPAC chairperson Senator Moses Kajwang’ questioned the performance and raised concerns over whether leakages in the system could be contributing to the shortfall. The governor rejected that claim and defended the county’s automated revenue system.

“Our system is fully automated. It is linked directly to our bank accounts, and I can state confidently that there is no way payments can be made without being captured and received through the system,” he said.

Revenue gains amid setbacks

Despite the shortfall in land rates, Mombasa County has recorded steady growth in overall own-source revenue. The county collected Ksh3.9 billion in 2022/23, Ksh4.5 billion in 2023/24, and Ksh4.8 billion in 2024/25. Officials attribute this rise to improved enforcement and digitisation of services.

However, CPAC noted that not all revenue streams performed well. Cess collection fell short, with the county collecting Ksh520 million against a target of Ksh780 million. Business permit revenue also faced pressure as some firms remained outside the tax net.

Governor Nassir said disruptions in collection points affected cess revenue. He also pointed to reforms underway, including digitising land records and reviewing the valuation roll.

“Efforts are underway, including the digitisation of land records, collaboration with the Registrar of Lands, and the revision of the county valuation roll,” he said.

Senator Kajwang’ said land rates continue to be the weakest link in Mombasa County revenue systems and called for stronger national coordination on policy. He urged faster implementation of the National Rating Act, 2024, to help counties improve collections.

CPAC also raised broader concerns on county funding, including the sustainability of Community Health Promoters, and suggested their financing be secured through the equitable share to avoid disruptions.

Mombasa now faces a clear test: modernise its revenue systems or continue losing potential income. The focus on land rates, business permits, and cess collection will shape how far the county can close its revenue gap in the coming financial year.