Nairobi County Grapples with Revenue Losses Amidst System Failures

Recent revelations have exposed Nairobi County’s financial hemorrhage, a consequence of persistent glitches in its revenue collection systems.

During a public participation session on Wednesday 13 and Thursday 14, the county’s urban planning and parking fee revenue team disclosed alarming trends before the Ad Hoc Committee on Revenue Collection.

City motorists, identified as the primary contributors to this financial challenge, have adeptly exploited system failures to reverse their payments, creating a chaotic scenario.

Lucy Kanini, the officer in charge of loading zones, vividly portrayed the disruptions, emphasizing the frequent breakdowns in systems, with parking being the most severely impact

The absence of title deeds for land and buildings poses a significant hurdle to the Nairobi Pay System, hindering its ability to extract revenue from property owners.

Out of nearly 180,000 properties in the system, only 177,000 are actively contributing to the revenue pool, leaving a substantial gap.

Ad Hoc Committee Observations.

The committee chair, Peter Imwatok, highlighted disparities in compliance across the city, noting variations in revenue payment percentages between different areas.

The committee also learned about system flaws beyond revenue loss, with faulty invoices displaying double the amount paid by residents, and some payments mysteriously absent from the system altogether.

System Challenges and Solutions

Stephen Mutua, Head of Rates at Nairobi City County, shed light on system-generated double invoices and missing payments, urging concerned citizens to exercise patience until January for a manual update.

The system currently lacks access to bank statements, relying solely on dashboard reconciliation.

Urgent Call for Overhaul.

The committee emphasized the urgent need for a comprehensive overhaul of the system to curb further revenue losses.

Established under Standing Order 211, the Ad Hoc Committee aims to investigate the revenue collection system and administration by Nairobi City County from 2013 to 2023.

The inquiry seeks to identify leaks, map revenue sources, and estimate the county’s internal revenue potential fairly.

Public Participation and Revenue Streams: As the committee conducts public hearings, the general public continues to submit memoranda on matters related to revenue streams, contributing to the ongoing narrative of Nairobi’s financial landscape.

The county has digitized more than 136 revenue streams, including parking fees, rates, single business permits, house rents, and building permits.