DISMAL PERFORMANCE

Report exposes poor show in City Hall's revenue collection

The sources of internal revenue include rates, single business permits, parking fees, building permits and billboard advertisements

In Summary

• Only Sh9.03 billion collected by quarter three of the 2018/19 financial year.

• The revenue performance report shows that a paltry Sh834. 8 million was collected last month​.

City hall. Photo/Monicah Mwangi
City hall. Photo/Monicah Mwangi

Revenue collection in Nairobi remains dismal with only Sh9.03 billion collected by quarter three of the 2018/19 financial year, according to the County Treasury report.

The report says the amount collected is expected to be more than last year's Sh10.1 billion by the end of the fiscal year next month. But it will be short of the Sh15.59 billion target.

According to the revenue performance report, the county had raised Sh7.8 billion in a similar period last year. The sources of internal revenue are rates, single business permits, parking fees, building permits and billboard advertisements.

 

Others include house rents, construction site boards, liquor fees, fire inspection certificates, Wakulima Market and other markets.

Quarter three of the financial year covers January-March.  The county collected Sh1.7 billion in January, Sh1 billion in February and Sh1.5 billion in March.

It collected Sh834.8 million last month, the lowest since the start of the financial year.

The County Assembly Budget and Appropriations Committee says that revenue performance directly impacts the delivery of services and any mismatch should be a matter of concern to legislators.

The committee regrets that the county collects an average of Sh11 billion annually despite enthusiastic internal revenue projections of up to Sh16.6 billion of own revenue sources.

This implies that to achieve the intended target, the county will have, for instance, to collect in excess of Sh7 billion in quarter four of the current financial year.

The above is contained in the twelfth report of the select committee on county Finance, Budget and Appropriations on the Nairobi City County Fiscal Strategy Paper, under the Budget ceilings for the Financial year 2019-2020.

 

The report states that the highest amount the county has ever collected in quarter three of any financial year is Sh2.29 billion.

City Hall often accuses national government institutions of being the highest land rates defaulters.

Nairobi is set to receive Sh15.5 billion from the national government in 2019-2020 financial year which starts in July. The amount is Sh200 million more than what the capital got in the 2018-2019 financial year.