Nairobi, Narok, and Kiambu counties have been recognized for significantly boosting their own source revenue (OSR) in the 2023-24 fiscal year. During this period, all counties collectively raised Sh58.9 billion.
Under Governor Johnson Sakaja, Nairobi saw an increase of Sh2 billion, achieving a total of Sh12.5 billion compared to Sh10.3 billion the previous year. Narok, led by Governor Patrick Ntutu, raised its revenue by Sh1.7 billion to reach Sh4.7 billion, with a significant portion coming from national parks. Governor Kimani Wamatangi’s Kiambu increased its collection by approximately Sh1 billion, totaling Sh4.58 billion, up from Sh3.6 billion.
According to a report by Controller of Budget Margaret Nyakang’o, this represents a notable improvement from the Sh37.81 billion collected in the previous fiscal year. Nairobi topped the list with Sh12.5 billion, followed by Mombasa with Sh5.5 billion. Narok was third with Sh4.7 billion, and Kiambu was fourth with Sh4.58 billion.
Other top counties include Nakuru (Sh3.3 billion), Machakos (Sh1.5 billion), Kisumu (Sh1.44 billion), Uasin Gishu (Sh1.42 billion), Nyeri (Sh1.4 billion), and Kakamega (Sh1.3 billion). Counties with collections of around Sh1 billion include Homabay (Sh1.2 billion), Kisii (Sh1.18 billion), Murang’a (Sh1.1 billion), Laikipia (Sh1 billion), and Kilifi (Sh1.2 billion). Bungoma also reached Sh1.1 billion.
The counties with the lowest collections were Tana River (Sh92 million), Marsabit (Sh145 million), Wajir (Sh164 million), Mandera (Sh168 million), West Pokot (Sh185 million), Lamu (Sh209 million), Samburu (Sh266 million), Vihiga (Sh338 million), Nyamira (Sh369 million), and Tharaka Nithi (Sh417 million).
Nairobi’s revenue included Sh3.4 billion from land rates, Sh2.38 billion from business permits, Sh2.38 million from other sources, Sh1.9 billion from parking fees, Sh1.2 billion from building approvals, and Sh1 billion from health services. This marks a 22.3 percent increase from the Sh10.48 billion collected in the same period the previous year.
In the 2023-24 fiscal year, several counties saw significant increases in their own source revenue (OSR), highlighting the impact of targeted financial strategies.
Mombasa County, under Governor Abdullswamad Sherrif Nassir, collected Sh1.1 billion from health services, Sh934 million from land rates, Sh664 million from parking, Sh595 million from business permits, Sh503 million from cess, and Sh1.7 billion from “other sources.”
Narok County saw substantial growth, raising Sh4.3 billion from national parks, Sh209 million from cess, Sh70 million from single business permits, Sh59 million from health services, Sh27 million from liquor, and Sh98 million from “other sources.” This represents an increase of Sh1.7 billion from the previous year when Sh3 billion was collected. The county’s total revenue of Sh4.78 billion, including the Facility Improvement Fund (FIF) and other sources, reflects a 56.2 percent increase compared to Sh3.06 billion in the FY 2022/23.
Kiambu County, led by Governor Kimani Wamatangi, generated Sh1.197 billion from health services, Sh818 million from technical services fees, Sh809 million from property income, Sh410 million from business permits, Sh349 million from parking, and Sh989 million from “other sources.”
Kiambu’s revenue increased by approximately Sh1 billion from Sh3.6 billion in the previous year to Sh4.58 billion, marking a 26.8 percent rise. This upward trend has been ongoing since 2022, with an increase of Sh1.5 billion over the last two years without raising existing fees and levies. The rise is attributed to the introduction of a new ERP revenue system, land rate waivers, and enhanced collection initiatives.
Despite these successes, some counties continue to face challenges in maximizing their revenue potential. A Treasury study, supported by the World Bank’s “Comprehensive Own Source Revenue Potential and Tax Gap Study on County Governments,” suggests that counties have the potential to generate around Sh93 billion annually. This indicates that many counties may be underestimating their revenue capabilities during budget planning.
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).
