Economy

City Hall revenue up Sh1bn on improved efficiency

CHall

The City Hall building in Nairobi. FILE PHOTO | NMG

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Summary

  • City Hall recorded a Sh1 billion rise in its internal revenues for the year to June, defying disruptions caused by the Covid-19 pandemic.
  • Data from the county’s finance department shows that City Hall raised Sh9.94 billion in the period under review, reflecting a 16.6 percent rise from Sh8.52 billion last year.
  • Collections from rates, single business permits (SBPs), and building permits increased but parking fees took a hit and dropped in the period under review.

City Hall recorded a Sh1 billion rise in its internal revenues for the year to June, defying disruptions caused by the Covid-19 pandemic.

Data from the county’s finance department shows that City Hall raised Sh9.94 billion in the period under review, reflecting a 16.6 percent rise from Sh8.52 billion last year.

Collections from rates, single business permits (SBPs), and building permits increased but parking fees took a hit and dropped in the period under review.

The increment came after the Kenya Revenue Authority (KRA) took over the revenue collections for the county in March 2020 after former Governor Mike Sonko transferred four key functions including revenue collection to the State.

The taxman is in charge of all the 137 revenue streams for the county government with Nairobi residents using mobile money to pay for services.

But the revenues for the year to June are the second-lowest since the start of devolution as the county reeled from the economic slowdown and disruptions of the coronavirus pandemic.

“The underperformance is largely due to the Covid-19 effects that have slowed down the economy translating to reduced business activity as customers adopt a wait-and-see attitude,” City Hall says in the report.

Building permits topped streams that recorded increased collections to hit Sh713.1 million which is a 56 percent raise followed by collections from rates that were up 48 percent to Sh2.77 billion. SBPs came third with an 11 percent jump to Sh1.65 billion.

Collections from food handling certificates took the biggest hit to drop 28 percent to Sh91.14 million followed by billboards that fell two percent to Sh736.3 billion and parking fees that dropped one percent to Sh1.52 billion.

The continued ban on social gatherings and closure of eateries as part of restrictions meant to curb the spread of the Covid-19 took a toll on the food handling certificates that had in the previous year raised Sh127.7 million.