City still far from achieving revenue targets
The new land rates and licensing fees have pushed up the county revenue collections for January up by 20 per cent.
With just five days to go to the end of the month, the county has collected Sh1.2 billion compared to Sh754 million in January 2013.
Despite the rise, Nairobi is likely to miss its annual target by a large margin. So far, it has collected Sh4.5 billion with this expected to go up to slightly over Sh6 billion by the end of June. This is far below the Sh15.9 billion that was to be raised through local revenue sources.
It is not clear what projects have been scrapped as a result but the planned Sh7.5 billion in development projects is likely to take a big hit with recurrent expenditure taking up 84 per cent in the audited accounts of the first quarter.
The county is however injecting new blood in its revenue team.
“We are looking forward to the new head of revenue who is expected to bring in fresh ideas. With more skilled personnel, residents will get value for their money,” said the chief revenue officer Nixon Otieno.
January is an important revenue-collection month as businesses renew licences as well as health, and fire certificates. Land rates are also payable in January.
Nairobi expects to receive Sh9.9 billion of devolved funds from the central government this Financial Year.