Nairobi Governor
Johnson Sakaja is banking on compliance, regularisation of developments, and
digital reforms to fund the county’s Sh44.6 billion budget for the 2025/2026
financial year — all without introducing new taxes.
Finance and Economic Planning CEC Charles Kerich, who
presented the budget to the Nairobi County Assembly last week, laid out key
strategies the administration will deploy to meet its revenue targets.
The county recently recorded Sh13.8 billion in revenue — its
highest ever — a milestone achieved without increasing taxes or levies.
Kerich said the newly passed Regularisation of Illegal
Developments Bill, now awaiting the Governor’s assent, will be a game changer.
The legislation provides a legal pathway for developers who
constructed buildings without approvals to formally regularise them.
“This will provide a pathway for buildings already
constructed to be approved and brought into the formal system. We expect to
raise at least Sh5 billion through this,” said Kerich.
He added that the county, in collaboration with the National
Government, will begin rolling out sectional property titles this financial
year.
The move is aimed at unlocking dormant property value and
ensuring proper documentation.
“This initiative will unlock property ownership and enhance
compliance. From this, we expect revenue of not less than Sh2 billion,” he
said.
To further boost compliance, the county will introduce
penalties for residents and businesses who fail to pay for services on time.
Kerich was clear that the county is not introducing new
charges but enforcing payment discipline.
“We are not increasing the cost of services, but we will now
introduce penalties for non-compliance. This ensures accountability without
overburdening residents,” he explained.
Another major focus is mapping all land parcels, buildings,
and businesses in Nairobi to expand the tax base and identify revenue
opportunities.
“This will help us bring more people into the revenue system
and reduce reliance on a few compliant entities,” said Kerich.
To ease payment processes, the county is also investing in
digital systems that will allow residents and businesses to access and pay for
services online.
“We want to make it easier for residents and businesses to
pay for services by investing in more open and accessible platforms. This will
improve compliance and reduce the cost of doing business in Nairobi,” said
Kerich.
Governor Sakaja’s administration is banking on these reforms
to strengthen revenue collection, cut wastage, and deliver better services
without adding pressure on residents already grappling with high living costs.
