Fire inspection fees dropped by 90 per cent to just Sh5.3 million, marking one of the steepest year-on-year falls in recent memory.
Market rates fell by 11.6 per cent to Sh189.37 million, while parking revenue declined by four per cent, totaling Sh1.89 billion.
Protests in Kenya/FILE
Over a year since the 2024 Anti-Finance bill protests,
score cards are in on its impact on Nairobi county revenue performance, with
data showing that revenue collection took a huge hit.
The protests had police clash with youthful protesters on
the streets, and goons infiltrated them to vandalise and loot business premises.
Many job premises and small and medium-sized enterprises
closed shops in caution.
Data obtained by the Star from City Hall shows that the
interrupted economic lifelines did not just impact the lives of ordinary
Nairobians but the shocks also reverberated into the corridors of governor
Johnson Sakaja’s City Hall.
The loss in revenue came primarily from sectors that depend
on daily engagement: informal markets, parking spaces and inspection services —
all of which require city residents to be out, moving and doing business.
For example, fire inspection fees, market rates and parking
charges — all tied closely to routine activity in the city — saw dramatic
declines in the 2024-25 financial year, the data shows.
Fire inspection fees dropped by 90 per cent to just Sh5.3
million, marking one of the steepest year-on-year falls in recent memory.
Market rates fell by 11.6 per cent to Sh189.37 million,
while parking revenue declined by four per cent, totaling Sh1.89 billion.
Yet, despite these losses, Nairobi county’s overall
own-source revenue saw a marginal increase depicting the resilience of Kenyans
to pull back from the ground after falling.
It rose to Sh13.26 billion from Sh12.8 billion in the
previous year.
This growth was driven by gains in other revenue streams
less susceptible to day-to-day disruptions.
Further, rent from county-owned houses and market stalls
increased by 51.2 per cent, reaching Sh761.82 million. Revenue from building
approvals grew 17.2 per cent to Sh2.57 billion and business permit fees rose
7.4 per cent to Sh1.44 billion.
These gains helped the county offset the slump in
activity-based income. But behind the numbers lie systemic weaknesses that
continue to hinder Nairobi’s financial stability — from outdated revenue
systems to reliance on national transfers.
Since devolution in 2013, Nairobi county has struggled to
meet its revenue targets. Officials cite corruption among some revenue staff,
heavy reliance on manual collection systems prone to leakage and unrealistic
projections not grounded in economic data.
Compounding the challenge were delays in disbursements from
the National Treasury, county treasury mandarins say.
Several county departments reported months-long salary
delays during the financial year, with service delivery also affected. The
fiscal uncertainty, exacerbated by unrest, left many county operations in
limbo.
Experts say the protests exposed the county’s overdependence
on volatile income streams. Daily fees from markets and parking — while
essential — are among the most vulnerable to disruption. A single week of
unrest can erase millions in potential revenue.
It is not clear what legal framework continues to anchor the
county’s revenue collection measures in the current financial year given that
the 2023-24 that it had relied on was voided by the High Court in June 2025 and
the 2025-26 one has not been enacted.
INSTANT ANALYSIS
As the city steps into a new fiscal year, the lesson is hard
to ignore: stability on the streets is directly tied to stability in the books.
And until Nairobi finds a way to safeguard its revenue from such shocks, the
consequences will continue to fall hardest on those who rely on the city’s
markets, roads and services every day.
