Nairobi County plans to increase its revenue collection, aiming for Sh60 billion annually under the newly enacted National Rating Act, 2024.
The law provides counties with a clear system to value and collect rates on land and buildings while establishing enforcement procedures. Governor Johnson Sakaja said his government is determined to fully utilise these rules to strengthen internal revenue, which currently lingers at Sh13.8 billion.
The Commission on Revenue Allocation indicates that Nairobi’s revenue potential remains vastly untapped, with the city capable of collecting at least Sh60 billion if long-standing compliance issues are addressed.
“The new Act offers a pathway to fix chronic under-collection by modernising land valuation, expanding the tax base and strengthening enforcement mechanisms,” Sakaja told the Senate County Public Accounts Committee on Monday.
Under the legislation, property owners who fail to pay rates will receive a 60-day notice and could face fines, restricted county services, legal proceedings, or auction of their property.
Sakaja highlighted the need to address inconsistencies in the current system, where properties of different sizes often pay the same rates.
Properly implementing the law would bring all 250,000 land parcels in Nairobi into the rating system, compared to the 50,000 currently contributing to county coffers. “If that happens, the city could multiply its revenue base and unlock development that has been delayed for years,” he said.
He also pointed to the success of the Unified Business Permit, which merges multiple licenses into a single application process. The initiative has generated an additional Sh3 billion in revenue.
“You no longer need many licences or visits to City Hall. The Unified Business Permit covers all services, and you apply directly on NairobiPay,” Sakaja explained.
He defended the NairobiPay platform, saying it “has greatly improved collections.”
Additionally, the county has started formalising unauthorised developments to improve safety, ensure structural standards, and foster orderly urban expansion.
Sakaja noted that bringing these areas into the official system will also widen the revenue base, providing funds for infrastructure and other public services.
