NAIROBI, Kenya, Nov 28 – Nairobi Governor Johnson Sakaja has conceded that the county still faces major structural weaknesses in its revenue collection systems, even as he defended the Nairobi Pay digital platform for helping seal loopholes and improve accountability.
Appearing before the Senate County Public Accounts Committee, Sakaja said digitisation is gradually reversing revenue leakages that have persisted for years and eroded the county’s financial potential.
He told senators that the platform — developed in collaboration with the Ministry of ICT and introduced through the now defunct Nairobi Metropolitan Services — has contributed significantly to recent growth in county collections.
“The system has helped us raise our own-source revenue from Sh10.8 billion to Sh 13.8 billion in just three years — the highest since devolution,” Sakaja said.
He added that digitising all revenue points has reduced losses and recommended that other counties replicate the approach to curb wastage.
Sakaja cited the Unified Business Permit as one of the administrative reforms boosting efficiency in the business environment.
“You no longer need multiple licenses. The Unified Business Permit covers all services, and applications are made directly through Nairobi Pay. This reform alone has generated Sh3 billion in revenue,” he said.
Despite the gains, Sakaja said the county is still far from tapping its full revenue base. Nairobi currently collects land rates from only 50,000 out of 250,000 parcels, leaving 200,000 properties outside the tax bracket.
He said the newly enacted National Rating Act will streamline valuation, expand the number of rateable properties and strengthen enforcement.
Under the law, defaulters may be issued with a 60-day demand notice, penalised, denied county services, or face legal enforcement including property liens or auction in extreme cases.
Sakaja also called for correction of longstanding inequalities in the system where bungalows and apartments pay similar rates despite vast differences in land size.
He further told senators that the city had begun regularising unauthorised developments to improve compliance and planning order.
Committee members, however, challenged the county to address concerns over high transaction fees charged by commercial banks that handle some county revenue streams.
