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Nairobi County unveils Ksh.44.6B budget for 2025/2026 with no new taxes introduced

Published 1 day ago2 minute read

Published on: June 27, 2025 10:39 (EAT)

Nairobi City County Finance and Economic Planning CEC Charles Kerich officially presented the 2025/2026 Finance Budget to the County Assembly, assuring residents that no new taxes have been introduced despite a broader tax base.

The total projected expenditure for the upcoming fiscal year stands at KSh44.6 billion, comprising KSh31.2 billion for recurrent spending and KSh13.4 billion for development.

The development allocation represents 30% of the total budget, in line with Section 107 of the Public Finance Management Act, 2012, which requires that counties allocate at least 30% of their budgets to development initiatives.

Kerich noted that the decision to maintain current tax rates was aimed at protecting residents from the ongoing economic challenges.

“Due to financial constraints, taxes will not be increased to protect our people from the tough economic times,” he stated during the budget presentation.

Instead of imposing new levies, the county has opted to expand its tax base by tapping into previously untapped revenue streams. This strategy is expected to enhance service delivery without increasing the financial burden on residents.

Receiver of Revenue Tiras Njoroge reported that Nairobi County had exceeded its revenue target for the 2024/2025 financial year, collecting KSh13.7 billion, a significant rise from KSh12.8 billion the previous year. This continues a steady growth trend, with revenue having reached KSh12.1 billion in 2022/2023 and KSh10 billion in earlier years.

“It has been a tough year, especially with frequent protests in the CBD that disrupted revenue collection. Nevertheless, we managed to collect KSh13.7 billion,” Njoroge noted.

Finance Chief Officer Asha Abdi expressed confidence in the county’s financial outlook, citing key development initiatives underway despite political tensions at the national level.

“We are optimistic about continued progress under the leadership of Governor Johnson Sakaja. Key projects such as the KSh700 million school feeding program, which benefits over 316,000 learners, and the ongoing construction and rehabilitation of markets remain priorities,” she said.

Additionally, KSh2.155 billion has been allocated to ward development programs, with 145 projects completed over the past year. The county also committed KSh2.8 billion to road construction and upgrades, and KSh1.033 billion to building and enhancing sports complexes and stadiums for youth recreation.

The 2025/2026 budget underscores a commitment to enhancing public service delivery, accelerating infrastructure development, and supporting social welfare programs, all while maintaining fiscal discipline and adhering to statutory financial management regulations.

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