Nairobi City County has posted a record Sh15.4 billion in own-source revenue for the 2025/2026 financial year, nearly doubling collections over the last four years as county officials attribute the growth to technology-driven reforms and improved efficiency in revenue collection.
The county collected Sh15.399 billion during the financial year, representing an increase of Sh1.6 billion from the Sh13.8 billion realised in the 2024/2025 financial year.
Compared to the approximately Sh8 billion collected annually before Governor Johnson Sakaja took office in 2022, the latest figures represent a growth of Sh7.4 billion, translating to a 92.5 percent increase over four financial years.
County officials say the strong performance reflects the impact of deliberate reforms aimed at sealing revenue leakages, simplifying compliance processes, and widening the revenue base without introducing additional taxes for residents and businesses.
Among the reforms credited for the growth is Nairobi Pay, the county’s fully digitised revenue collection platform that allows residents to make payments online or through the *667# service.
Officials say the platform has significantly reduced cash transactions, enhanced transparency, and ensured that payments are processed through a centralised system, limiting opportunities for revenue losses.
Governor Sakaja said the platform has transformed the way county revenues are collected while making services more accessible to residents and businesses.
“Nairobi Pay has brought transparency, convenience and accountability to revenue collection. By eliminating cash transactions and digitising payments, we have sealed loopholes, improved efficiency and made it easier for residents and businesses to pay for county services. This is proof that technology can increase revenue without increasing taxes,” he said.
According to the county chief, digitisation has improved convenience and accountability while proving that governments can increase revenue without imposing new taxes.
The county has also introduced the Unified Business Permit system, which consolidates several business licences into a single permit.
Officials say the reform has reduced bureaucracy and compliance costs while making it easier for entrepreneurs to formalise and expand their businesses within the city.
Revenue data released by the county shows that land rates remained the highest source of revenue, generating Sh3.31 billion. Hospital revenue followed at Sh2.73 billion, while Unified Business Permits generated Sh2.68 billion.
Parking fees brought in Sh1.78 billion, while building plans and inspections generated Sh1.56 billion. Other revenue streams included billboards and advertisements, house and stall rent, liquor licensing, markets, and food handlers’ certificates.
The county also linked the improved collections to reforms in the health sector, where management of Level 4 and Level 5 hospitals was placed under professionally recruited Chief Executive Officers supported by hospital boards. Officials say the changes improved accountability and financial management in health facilities.
Receiver of Revenue Tiras Njoroge said sustained digital reforms had strengthened public confidence and improved compliance, adding that the county will continue expanding the revenue base and improving payment systems.
“The success we are witnessing is the result of sustained reforms that have digitised revenue collection, eliminated leakages and simplified payment processes. Our focus remains on expanding the revenue base, improving compliance and ensuring every payment is secure, transparent and convenient for residents and businesses alike,” Njoroge said.
The record collection is expected to strengthen Nairobi’s financial position, reduce dependence on national government transfers and support funding for key development projects and service delivery.