City Hall revenues rise by Sh2.3bn in 9 months on greater taxes

May 16, 2024 | blog

City Hall’s inner income within the 9 months to March grew by Sh2.3 billion, setting Nairobi County on target for improved collections this monetary yr.

Latest information from the county present City Hall raised Sh9.34 billion, a 32 p.c leap from Sh7.12 billion in comparable interval final yr with vital increments in single enterprise permits (SBPs), constructing permits and land charges.

The development comes when City Hall elevated many prices, together with parking charges and market charges and widened the tax base on these paying land charges to boost inner collections.

The highest quantity that City Hall has collected in inner revenues in a full monetary yr because the begin of devolution is Sh10.9 billion within the yr to June 2019.

“We are on course to collect the highest revenue this financial year due to the measures that we have introduced,” Governor Johnson Sakaja not too long ago mentioned of the efficiency within the 9 months. “Our OSR (Own Source Revenue) has been on a gentle rise. We count on sustained development going ahead and within the coming months”.

Collections from SBPs jumped highest to Sh1.79 billion from Sh1.29 billion, an increase of 38.7 p.c adopted by constructing permits which jumped 33 p.c to Sh0.917 billion and land charges that rose 21 p.c to Sh2.63 billion.

SBPs, land charges and parking charges are the three main income streams for City Hall, accounting for at the very least 57 p.c of the collections each monetary yr.

City Hall made it obligatory for residents who personal residences inside blocks and share frequent areas throughout the residences to start out paying charges from January this yr. The charges are based mostly on the scale of the unit and its location.

The county additionally elevated licence charges on a raft of enterprise permits and likewise launched an annual certificates of Sh10,000 for water bowsers. Motorists have since September final yr been paying Sh300 to park within the central enterprise district up from Sh200.

But regardless of the numerous enhance in inner income collections, residents and companies within the metropolis proceed to grapple with billions of shillings in debt owed to contractors, poor service supply like dangerous state of roads and healthcare.

City Hall tops all of the counties in pending payments with Sh106.88 billion unpaid to contractors as of December final yr. The county has additionally defaulted a mortgage at KCB Group, which has since crossed the Sh4 billion mark on penalties and curiosity.

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