High default rates have led to a Sh3 billion drop in revenue collection targets by Nairobi County.
According to the County Fiscal Strategy Paper (CFSP) 2018, local revenue streams have been underperforming over the years.
This has, in turn, affected the internal targets for financial year 2018/19.
"The internal sources are expected to generate Sh17.04 billion, which is a reduction from the Sh20.17 billion targeted in FY 2017/18," read the report.
The County's top five revenue streams are rates, parking fees, single business permits, building permits billboards and adverts.
Revenue collected from single business permits at the end of the first half of 2017/18 was Sh378.9 million, 10 per cent of the annual target of Sh3.6 billion.
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Low returns were also blamed on undercharging e-payment platform and the slow pace of devolution.
Parking fees had contributed Sh787.3 million by the end of the
first half of FY 2017/18, a
decline from the Sh1.9 billion in 2016/17.
The county collected Sh1.6 billion in Janaury, Sh1.7 billion in February and Sh1.2 million in March.
To increase the figures, City Hall intends to reduce the daily downtown parking fees to Sh200 from Sh300 to attract more motorists to the city.
“For the county to increase revenue collection from parking fees, enforcement capability, supervision and capacity need to be developed,” read the report.
The county will also integrate technology into revenue collection.
Assets will be targeted as an avenue for raising capital through use of incentives for payments.
Revenue projections in the FY 2018/19, for all key revenue streams, add up to Sh13.34 billion.
Rates are expected to contribute the highest amount of internal revenue - Sh 4.6 billion - followed by Sh2.97 billion from parking fees, Sh2.9 billion from single business permits, Sh1.47 billion from building permits and Sh1.4 billion from advertisement.
Budget Committee Chairman Robert Mbatia earlier told the Star that the assembly will assist the Executive to ensure revenue targets are met.
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