City Hall misses revenue target by Sh11 billion

Nairobi city hall.This was on 5th September 2017.[Edward Kiplimo,Standard]

City Hall missed its revenue target for the 2016-2017 financial year by Sh11.02 billion.

According to the annual county financial report, Nairobi City County projected a revenue collection of Sh34.7 billion but was only able to raise Sh23.7 billion from all its revenue streams, hindering the financing of development projects across the county.

Land rates, a key revenue stream, brought in only Sh2.25 billion against an estimated Sh5.5 billion target, or just 41 per cent of the projected collection.

Parking fees, which was recently automated, raked in Sh1.97 billion against an estimated Sh3.5 billion. This was attributed to parking defaulters who sometimes colluded with county officials to evade payment.

Single-business permits, another major revenue earner, amounted to Sh1.7 billion against a Sh3.6 billion target. This represented a 49.3 per cent performance. Building permits recorded a dismal performance, having grossed a total of Sh842.8 million against the projected Sh1.7 billion.

Billboards and adverts earned the county Sh720 million but fell short of reaching the Sh1.2 billion target.

The report, which was tabled by County Assembly Deputy Speaker John Kamangu on Tuesday, showed that fire inspection certificates recorded Sh433 million against a projection of Sh180 million.

Rents collected

Rents collected also did fairly well after registering a total of Sh284.2 million against an estimated Sh300 million. This represented a 94 per cent performance.

Liquor licences raked in Sh233 million, which was Sh145.7 million short of the projected Sh379 million.

On the other hand, a handful of revenue streams surpassed the projected estimates in the financial year’s budget. The construction site board netted Sh325.2 million, surpassing the Sh200 million estimates. This was a 162 per cent performance against the budgeted revenues. 

Wakulima Market, Nairobi’s food basket, recorded Sh179.6 million against the estimated Sh144 million. Inoculation fees accounted for Sh74 million, surpassing the targeted Sh60 million. Hoarding fees managed to bring in Sh45.6 million, which was Sh11.6 more than the estimated Sh34 million.

Court fines from the legal, enforcement, planning and health departments brought in Sh26.2 million against a targeted Sh26 million.

Under Governor Mike Sonko, City Hall is keen on achieving the set 2017-2018 financial estimates. Last week, the Appointments Committee vetted nominees for county executive positions.

The nominees pledged to implement measures to improve revenue collection.

Vesca Kengogo, the nominee for Finance and Economic Planning, promised to “map out” revenue streams in the county to streamline operations and optimise collection.

Ms Kengogo said if confirmed, she would ensure that local revenues went towards paying salaries and other recurrent expenses.

“Nairobi has a serious under-funding issue that needs to be addressed and we should use a different approach this time,” she said.

She  faulted the current revenue allocation formulas, saying they did not favour the county.