Nairobi County revenues fall 55pc below target

City Hall, Nairobi. FILE PHOTO | NMG

What you need to know:

  • The county earmarked Sh17.3 billion this fiscal year but has collected Sh7.76 billion with weeks remaining to June 30.
  • Assembly Budget and Appropriations committee chairman Robert Mbatia says not more than Sh400 million can be collected between now and June 30.

Nairobi County could be forced to cut its spending priorities after recording its lowest ever internal revenues of less than Sh8.5 billion.

It earmarked Sh17.3 billion this fiscal year but has collected Sh7.76 billion with weeks remaining to June 30.

Assembly Budget and Appropriations committee chairman Robert Mbatia says not more than Sh400 million can be collected between now and June 30.

“From the projections we have as the Budget committee, this financial year’s own source revenue will hardly hit Sh8.5 billion,” said Mr Mbatia.

The Kariobangi South MCA said the drop means the county government will have to revise priorities for 2020/2021.

In March, the county warned budget for next financial year could be trimmed by up to Sh5.6 billion due to collections.

This financial year, City Hall had a budget deficit of more than Sh10 billion to finance the Sh36.98 billion budget after realising only Sh26.5 billion from equitable share from the national government, conditional grants and own source revenue.

The county’s own source revenue stood at Sh10.25 billion while equitable share was Sh15.5 billion, the rest being conditional grants.

Before the Kenya Revenue Authority took over revenue collections in March, Nairobi had collected slightly more than Sh6 billion.

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