Nairobi, Kiambu, Narok top revenue list

Nairobi, Narok and Kiambu have been ranked as the leading counties that exponentially raised on own source revenue (OSR) in the 2023-24 fiscal year during which all counties collected Sh58.9 billion cumulatively.

Nairobi, under Governor Johnson Sakaja, increased its collection by Sh2 billion to realise Sh12.5 billion up from Sh10.3 billion while Narok, under Governor Patrick Ntutu, increased its collection by Sh1.7 billion to pocket Sh4.7 billion, most of which was contributed by national parks.

Governor Kimani Wamatangi-led Kiambu increased its collection by approximately Sh1 billion to hit Sh4.58 billion up from Sh3.6 billion in the previous financial year.

Cumulative collection

According to a report by the Controller of Budget Margaret Nyakang’o, all 47 counties collected a cumulative Sh58.9 billion in 2023-24, an improvement from the Sh37.81 billion generated in the previous financial year. Nairobi, Mombasa, Narok and Kiambu counties collected the most own source revenue during the year under review.

Nairobi topped the list with Sh12.5 billion in collections, followed by Mombasa with Sh5.5 billion; Narok came in third place with Sh4.7 billion, and Kiambu came in fourth place with Sh4.58 billion.

Other counties in the top ten category were Nakuru (Sh3.3 billion), Machakos (Sh1.5 billion), Kisumu (Sh 1,443 billion), Uasin Gishu (Sh 1.42 billion), Nyeri (Sh 1.4 billion), and Kakamega closed the list of top ranked with Sh1.3 billion.

The other counties that hit Sh1 billion collection are Homabay (Sh1.2 billion), Kisii (Sh1.18 billion), Murang’a (Sh1.1 billion), Laikipia (Sh1 billion), and Kilifi. (Sh1.2 billion) Bungoma (Sh1.1 billion).

Ten counties with the least collection are Tana River (Sh92 million) Marsabit (Sh145 million); Wajir (Sh164 million); Mandera (Sh168 million); West Pokot (Sh185 million); Lamu (Sh209 million); Samburu (Sh266 million); Vihiga (Sh 338 million); Nyamira (Sh 369 million); and Tharaka Nithi (Sh 417 million).

Nairobi collected Sh3.4 billion from land rates, Sh2.38 from business permits, Sh2.38 million from “other sources”, Sh1.9 billion from parking, Sh1.2 billion from building approvalsSh1 billion from health services

The amount represented an increase of 22.3 percent compared to Sh10.48 billion realized in a similar period in the 2022/23 financial year.

Mombasa County Abdullswamad Sherrif Nassir- collected Sh1.1 billion from health services, Sh934 million from land rates, parking (Sh664 million), business permit (Sh595 million), cess (Sh503 million), and Sh1.7 billion from “other sources.

Increased collection

Narok, collected most of its revenue from the national parks, which raised Sh4.3 billion, cess Sh209 million, single business permits (Sh70 million), health services (Sh59 million), liquor (Sh27 million), and Sh98 million from “other sources.” The county increased its collection by Sh1.7 billion compared to the previous financial year when Sh3 billion was collected.

“The County generated a total of Sh4.78 billion from its revenue sources, inclusive of Facility Improvement Fund (FIF) , particularly health services and AIA. The amount represented an 56.2 percent increase compared to Sh3.06 billion realized in a similar period in FY 2022/23,” says the report.

Wamatangi’s Kiambu, had health services contributing Sh1.197 million, technical services fees (Sh818 million), property income Sh809 million, business permits Sh410 million , parking Sh349 million , and Sh989 million from “other sources.”

The county is also among those with the highest increment in terms of the amount collected between the 2023/2024 financial year when Sh3.6 billion was collected, and in the 2023/2024 fiscal year, when Sh4.58 billion was raised.

The increase was by approximately Sh1 billion from the previous year, representing an increase of 26.8 percent.

Since 2022, Kiambu has been registering an upward trajectory in revenue collection, having increased its collection by Sh1.5 billion in the last two years without increasing the existing fees and levies.

“The increase in OSR can be attributed to the introduction of a new ERP revenue system, the issuance of waivers on land rates that encouraged the public to pay, the creation of various task forces in tandem with Huduma Mashinani and Rapid Results iInitiatives (RRI) initiatives that helped in collection, supervising, and public sensitization,” Ms Nyakang’o says of Kiambu in her report.

This comes even as some counties continued to grapple with accusations of underestimating their potential for revenue during the budget-making process by setting low targets in comparison to their potential, as shown by a Treasury study.

A recent study by the World Bank on behalf of the Treasury dubbed “Comprehensive Own Source Revenue Potential and Tax Gap Study on County Governments” said counties have a potential to realize around Sh93 billion annually.

Massive theft orchestrated by their respective revenue officers, weak and inadequate collection systems, and evasion, among others, have been cited among the main dragons that have been eating counties’ own revenue source.

According to the report, Nairobi County, raised Sh3.4 billion was raised from land rates, business permits (Sh2.39 million), Sh2.38 million from “other sources,” parking (Sh1.9 billion), building approvals (Sh1.2 million), and health services (Sh1 billion).