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Vehicles run on the Nairobi Expressway in Nairobi, Kenya, Feb. 6, 2023/COURTESY

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Land rates, permits lead Nairobi County revenue sources

 

NAIROBI, Kenya, Sept 18 – Land rates, business permits, and parking fees are the leading sources of revenue for the County Government of Nairobi, new data from the Controller of Budget (CoB) shows.

The CoB County Governments Budget Implementation Review Report indicates that the devolved unit collected Sh3.3 billion from land rates (24 percent), Sh2.6 billion from business permits (19 percent), Sh1.9 billion from parking fees (14 percent), and Sh1.7 billion from hospital fees (13 percent).

Other sources included Sh1.4 billion from building permits (11 percent), Sh761.29 million from house rents and stalls (5 percent), and Sh636.99 million from billboards (5 percent).

“During the year, the County generated Kshs 13.53 billion from its revenue sources, including the FIF. This amount was an increase of 5.6 per cent compared to Kshs 12.81 billion realised in a similar period in FY 2023/24, which was 66.3 per cent of the annual target and 67 per cent of the equitable revenue share disbursed. The OSR included revenue arrears and penalties charged on fees and levies from previous financial years, amounting to Kshs 789.75 million,” CoB said in the report.

To increase own revenue, Nairobi County plans to clean up land data to establish clear ownership, property locations, and debts, as well as eliminate ghost and duplicate entries.

“Outdoor advertising will be fully digitised through GIS mapping of all billboards and signage, linked to permits and payment records. Defaulters will receive demand notices, and persistent non-payers will face takedowns or penalties. Partnering with advertising agencies under enforceable contracts will increase compliance. The County will also issue agency notices to enforce compliance.”

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