City county eases tax burden on Nairobi residents

Nairobi County government will not burden city residents with additional taxes.

This was revealed on Thursday when the county presented its Sh35.9 billion budget for the 2017-2018 Financial Year.

In the estimates by County Executive for Finance Gregory Mwakanongo, the last budget estimates before the end of the first term of the current administration, Sh15.7 billion is national government allocation while the county projects Sh20.2 billion from internal revenue.

Recurrent expenditure takes Sh24.1billion of the budget while Sh11.8 billion goes to development.

Mr Mwakanongo said that this means that the budget will be fully financed through internally generated revenues and transfers from the National Government.

However the county has failed to reach its internal revenue target since its inception in 2013 forcing the assembly to supplement the budget.

“The county relies on transfers from the National Government and revenues collected from rates, business permits, parking and other fees and charges. The increase in these fees and charges has a direct impact on the cost of doing business,” said Mr Mwakanongo.

He was optimistic that in the 2017/2018 FY, all targets will be met and that a review of current fees and charges will not be proposed.

Instead, he said, the county will be outlining measures aimed at improving and enhancing efficiency in revenue collection to finance the budget.

Mr Mwakanongo said several intervention measures aimed at increasing the revenue base, improving efficiency in revenue collection and enhancing technology in revenue management will be enhanced.

The focus will be on ensuring the passage of the Valuation and Rating Act at the County Assembly, which will in turn provide a framework for the review of the valuation roll.

The county will also be restructuring key six revenue streams through creation of directorates to better manage revenues from, rates, parking, Single Business Permits, Outdoor Advertisement and Billboards, Building Approvals and Health Certificates

They will also use of e-citizen database to bring on board more rates accounts thus further widening the revenue base.

Mr Mwakanongo added that the county will also carry out decentralization of applicable revenue streams to sub-county and ward level and integrate the database with the e-Citizen portal.

“These measures must be pursued with vigour if we are to realise our budget objectives. However, this requires the support of all including members of this Assembly,” said Mr Mwakanongo.