Nairobi County Revenue Collection Rises by KSh 1 Billion after State Takeover
- City Hall raised KSh 9.94 billion in the period under review, reflecting a 16.6% rise from KSh 8.52 billion in 2020
- The taxman took over the county's revenue collections in March 2020 after former governor Mike Sonko transferred four key functions to the state
- The devolved unit's revenues for the year to June are the second-lowest since the inception of devolution
The county government of Nairobi has received a major boost after recording a KSh 1 billion rise in its internal revenues for the year ending June 2021 despite disruptions caused by the devastating effects of the COVID-19 pandemic.
According to a report by Business Daily, Nairobi City county's finance department data indicated that City Hall raised KSh 9.94 billion in the period under review.
This is a reflection of a 16.6% rise from KSh 8.52 billion in 2020.
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Drop in parking fees
While the parking fees decreased during the period under review, collections from land rates, permits for single business (SBPs), and construction of buildings soared.
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Ex-governor Mike Sonko transferred four key functions, including revenue collection, to the state during a function held at State House, Nairobi and presided over by President Uhuru Kenyatta.
Sonko inked the 'Nairobi takeover deal' handing over key county functions to the Nairobi Metropolitan Service (NMS) under Mohamed Badi.
Taxman handed 137 revenue streams
In 2020, Kenya Revenue Authority (KRA) was authorised to manage all the 137 revenue streams that fall under the jurisdiction of Nairobi City county.
“As we are all aware, this unprecedented crisis has hit us hard slowing down the economy,” the county said in a statement.Building permits came top on the streams that recorded increased collections to hit KSh 713.1 million.
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This translated to a 56% rise against collections from rates up 48% to KSh 2.77 billion.
COVID-19 restrictions
The COVID-19 restrictions on social gatherings led to the closure of eateries.
This negatively affected the food handling certificates that had in the previous year raised KSh 127.7 million.
In June 2021, City Hall announced plans to start charging parking fees in estates.
Nairobi county currently charges a daily parking fee of KSh 200.
Nairobi's city centre's total car parking space is 14,864, of which 3,941 are on-street parking, representing 26.5%.
Off-street parking slots are 3,834, while 7,089 are building parking.
While launching the 2021 Economic Survey Report on Thursday, September 9 in Nairobi, National Treasury Cabinet Secretary Ukur Yatani said the economy, like others, still faces the negative unprecedented impacts of the COVID-19 pandemic.
''In 2020, Kenya’s economy was adversely affected by the COVID-19 pandemic resulting in significant slowed down economic activities,'' Yatani said.He indicated that during the review period, the government's priority was to safeguard citizens lives while at the same time cushioning the economy from the effects of COVID-19.
Source: TUKO.co.ke
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