Land Rates Largest Source of County Revenue

Nairobi County recorded a 40.7% growth in revenue between the 2013/14 and 2016/17 fiscal years according to the integrated county development plan. This saw revenue grow from Ksh. 17.7 billion to Ksh. 24.9 billion. During the period, county local revenue collection averaged 74.05% of the target. The County Integrated Development Plan also shows that the land rates accounted for the largest chunk of the county’s local revenue

The county has five key revenue streams which include parking fees, rates, single business permits, billboards and advertisements, and building permits. These contributed an average 69.17%, 78.81%, 72.07%, 90.57% and 67.3% of county local revenue as per set targets for financial years 2013/14, 2014/15, 2015/16 and 2016/17 respectively.

According to data from the county’s budget office, land rates was the single largest contributor to local revenue in the period under consideration. In total, land rates generated Ksh. 10.27 Billion in the four years.

All five streams fell below set targets during those four years save for billboards in 2013/14 fiscal year recording 133% and building permits in 2014/15 at 104%.

For the fiscal year 2016/17 year, local revenue dipped 6.7% compared to the previous year achieving an aggregate of 45.67% of set targets. Parking fees, land rates, single business permits, billboards and advertisement, and building permits achieved 40.9%, 55.6%, 49.4%, 49.54% and 60% of their targets respectively, impacting county operations.

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