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How Sakaja plans to fund Sh44.6bn budget without new taxes

Published 1 day ago2 minute read
Nairobi Governor Johnson Sakaja.FILE

Nairobi Governor Johnson Sakaja is banking on compliance, regularisation of developments, and digital reforms to fund the county’s Sh44.6 billion budget for the 2025/2026 financial year — all without introducing new taxes.

Finance and Economic Planning CEC Charles Kerich, who presented the budget to the Nairobi County Assembly last week, laid out key strategies the administration will deploy to meet its revenue targets.

The county recently recorded Sh13.8 billion in revenue — its highest ever — a milestone achieved without increasing taxes or levies.

Kerich said the newly passed Regularisation of Illegal Developments Bill, now awaiting the Governor’s assent, will be a game changer.

The legislation provides a legal pathway for developers who constructed buildings without approvals to formally regularise them.

“This will provide a pathway for buildings already constructed to be approved and brought into the formal system. We expect to raise at least Sh5 billion through this,” said Kerich.

He added that the county, in collaboration with the National Government, will begin rolling out sectional property titles this financial year.

The move is aimed at unlocking dormant property value and ensuring proper documentation.

“This initiative will unlock property ownership and enhance compliance. From this, we expect revenue of not less than Sh2 billion,” he said.

To further boost compliance, the county will introduce penalties for residents and businesses who fail to pay for services on time.

Kerich was clear that the county is not introducing new charges but enforcing payment discipline.

“We are not increasing the cost of services, but we will now introduce penalties for non-compliance. This ensures accountability without overburdening residents,” he explained.

Another major focus is mapping all land parcels, buildings, and businesses in Nairobi to expand the tax base and identify revenue opportunities.

“This will help us bring more people into the revenue system and reduce reliance on a few compliant entities,” said Kerich.

To ease payment processes, the county is also investing in digital systems that will allow residents and businesses to access and pay for services online.

“We want to make it easier for residents and businesses to pay for services by investing in more open and accessible platforms. This will improve compliance and reduce the cost of doing business in Nairobi,” said Kerich.

Governor Sakaja’s administration is banking on these reforms to strengthen revenue collection, cut wastage, and deliver better services without adding pressure on residents already grappling with high living costs.

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