Land rates drive Nairobi revenue to Sh3.4b in Q1

Revenue collected in Nairobi County increased by 16.4 per cent for the period between January and March 2023 to hit Sh3.44 billion signalling that changes in strategy has started to bear fruits.

The improved revenue performance was driven by several factors, including a significant rise in land rates which increased by 34.1 per cent year-on-year to Sh1.88 billion. The increase in land rates collection can be attributed to the joint mapping of properties with the Kenya Revenue Authority (KRA).

“The joint mapping exercise was aimed at identifying and documenting all properties within Nairobi County’s jurisdiction, which has resulted in increased accuracy in billing and collection of land rates,” City Hall said.

It added that the exercise has also helped in the identification of new properties that were not previously captured in the county’s revenue collection system.

Latest figures released by the County government shows that in addition to the increase in land rates collection, Nairobi County’s single business permit collections also increased significantly by 16.2 per cent to Sh942.7 million during the same period. The County government attributed the increase in single business permit collections to its efforts to simplify the application process and reduce bureaucratic hurdles faced by businesses.

Parking collections

Furthermore, parking collections in Nairobi County increased by 8.7 per cent to Sh619.9 million, reflecting a growth in the number of vehicles parked in the city’s central business district.

The increase in parking collections can also be attributed to the County government’s efforts to improve the parking system by introducing new technology and streamlining the payment process.

The County government has also acknowledged that the increased revenue collection will help in the implementation of key projects aimed at improving the lives of Nairobi residents.

Some of these projects include the rehabilitation of key roads and infrastructure, the provision of affordable housing, and the expansion of public transport services. The improved revenue collection performance is a positive sign for Nairobi County, which has been grappling with a revenue collection shortfall in recent years. In 2021, the County government recorded a revenue collection deficit of Sh8.4 billion, which was attributed to the impact of the Covid-19 pandemic on businesses and the economy at large.

The improved revenue collection figures for the first quarter of 2023 are a promising sign for the County government, which has set an ambitious revenue collection target of Sh23 billion for the fiscal year 2023/2024.

City Hall expects the increased revenue to provide the county government with the resources needed to implement key projects aimed at improving the lives of Nairobi residents, while also ensuring efficient and effective service delivery.

Own-source revenue

Nairobi has for years grappled with weak revenue collection systems and corrupt officials who continue to deny the country millions of shillings in daily revenue, undermining efforts to boost own-source revenue.

City Hall and Safaricom last month inked a two-year deal for the telco to offer a payment platform for Nairobi County services in a move set to lower pilferages in collecting taxes and levies.

The telco said it will develop the “My Nairobi App” for City Hall for free, allowing residents and businesses to pay parking fees, business permits, rents and food and health certificates digitally.