Nairobi County is banking on the newly enacted National Rating Act, 2024 to overhaul its revenue systems and unlock an estimated Ksh60 billion in annual collections from land and building rates.
Appearing before the Senate County Public Accounts Committee, Governor Johnson Sakaja said the law will modernize land valuation, widen the tax base and strengthen enforcement measures he believes will finally address Nairobi’s long-standing challenge of under-collection.
According to Sakaja, only 50,000 of the city’s 250,000 land parcels currently pay rates, leaving billions uncollected every year. The Act proposes a uniform rating system, clearer valuation standards and stricter follow-ups on defaulters, who will now receive a 60-day notice before facing penalties, restricted access to county services, legal action or auction of property.
He further noted that correcting valuation disparities such as bungalows and apartments paying similar rates despite varied land sizes will bring fairness and consistency across the board.
The governor also highlighted gains from the Unified Business Permit, which has generated an additional Ksh3 billion by consolidating multiple licences into a single digital application on Nairobi Pay. Regularization of unauthorized developments, he added, is expected to improve safety, support orderly growth and expand revenue streams.
But senators challenged the county’s performance, questioning why Nairobi collected only Ksh13.8 billion last year against a target of Ksh63 billion. Nandi Senator Samson Cherargei criticized the figure as “a drop in the ocean,” insisting City Hall must seal all loopholes.
Taita Taveta Senator Johnnes Mwaruma said Nairobi, as the economic heartbeat of the country, must lead by example in efficient revenue collection.
Sakaja maintained that when he took office, key revenue streams were not digitized and Nairobi Metropolitan Services had previously taken over some collections limiting the county’s capacity. He assured senators that ongoing reforms will place Nairobi on a more stable and predictable financial footing.
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