The Nairobi county government will from next week review its key revenue streams eying Sh17 billion revenue target.
Enforcement has been cited as one of the major impediments to revenue collection.
Finance Executive member Pauline Kahiga says aggressive revenue collection model will be adopted to ensure improved collection before the end of the FY2019/20.
“We have to hit optimum levels and improve on our potential, this has pushed for the review and employ sustained enforcement on the eight key streams of revenue for the county,” she said.
The county collected Sh10.25 billion in the 2018/19 financial year, up from Sh. 10.11 in the FY2017/18 recording an increase of Sh139 million.
The County Executive members, Chief Officers and Head of departments, agreed on the decision at the ongoing meeting focusing on the budget guidelines for the 2020/21 financial year, implementation of the 2019/20 budget and the supplementary budget.
The discussions anchored on revenue collection, budget absorption rate and improved service delivery to residents.
Economic and planning Chief Officer Washington Makodingo said the County will launch a major crackdown on land rate defaulters in an exercise targeting over Sh 500 billion.
Land valuation roll review will as well be effected a move that could double the collections.
‘’The land rates forms biggest own source revenue stream but we are missing a lot from this sector because of outdated charges that need to be reviewed,” noted Makodingo.
A recent assessment by the Commission on Revenue Allocation (CRA) blamed the slow growth in revenue collection on CRA and underperformance in land rates.
This is despite the fact that investors are making huge profits in property prices.
The report indicates that City Hall can collect up to Sh77.91 billion if it reviews its valuation roll upwards.
The county currently charges property owners land rates based on 25 percent of the unimproved site value as per the 1980 valuation roll.
Other areas targeted for improved revenue collection include markets, parking fees and full enforcement of charges and fees outlined in the finance bill.
The Nairobi County Assembly Budget and Appropriations Committee chairman Robert Mbatia said he is looking forward to seeing how the new measures will drive the revenue agenda.
“The first year was a political year so many people were closing stock and nothing much could be collected,” said Mbatia.
He said the old JamboPay system had loopholes that were being used to fleece the county of its funds.
“This time they have promised us that they will hit their target of Sh17 billion,” said Mbatia.