NGPU December 9, 2024

Nakuru Records an upward trajectory in Own Revenue Collection

Written by Jeremy Ogolla

Nakuru County is among the top dominance in revenue generation among the 47 devolved government units, according to the recently released first quarterly report by the National Treasury for the 2024/2025 fiscal year.

According to the report, Nakuru has collected close to 700 million Kenya Shillings of Own Source Revenue((OSR), during Q1 2024/25, placing it at position 4 (four).

The remarkable progress by Nakuru County in its revenue collection can be attributed to a raft of financial measures put in place by the County administration under the leadership of Governor Susan Kihika. The automation of revenue collection where residents pay for all services electronically has sealed off all loopholes that previously led to loss of revenue.

The County has also prioritized adequate legal and policy frameworks that have simplified tax procedures through a one-stop-shop, interlinking all the relevant government agencies to streamline the application process and revenue collection.

Other areas that Nakuru has leveraged to increase its Own Source Revenue are the training of its revenue officers to enhance institutional capacities to improve tax administration, formalizing the informal sector and integrating more businesses into the tax net, as well as fostering a culture of public participation.

The move will allow the County to have more resources to invest in local infrastructure, healthcare, education, and other public services, thereby promoting economic growth for Nakuru residents.

Top in the list is Narok County which collected 3 billion shillings as its OSR followed by Nairobi County which collected more than 2 billion shillings while Mombasa County collected more than 800 million shillings.

Meanwhile, Nakuru was followed at a distance by Machakos(287, 423,488), Kisii (270,474,361) and Kisumu(259, 358, 673). Other Counties in the top ten position are Nyeri(239,440,541), Kilifi (231,033,162) and Laikipia(221,073,816).

Own-source revenue refers to the income that county governments generate independently, typically through local taxes, fees, fines, and service charges. According to Kenya’s Constitution (2010), counties are responsible for generating revenue through property taxes, entertainment taxes, and charges for services provided, among others.

The County Governments in Kenya have three sources of finance namely the equitable share, conditional grants and own sources of revenue.