[Source: Business Daily, by John Mutua]
Property rates topped City Hall’s revenue collection as the county raised Sh10.25 billion in taxes, levies and penalties in the financial year ended June, falling short of the annual target by nearly Sh5 billion.
Data by the County Revenue Department shows that the Governor Mike Sonko administration collected Sh2.04 billion land rates, Sh1.95 billion from parking fees while business permits generated Sh1.99 billion.
The county increased its own-revenue collection by a paltry Sh130 million from the amount raised in the 2017-18 financial year citing inadequate resources to collect taxes, rampant staff corruption and use of outdated valuation rolls on property rates.
Taxes from property, business permits and parking raised a total of Sh5.98 billion against Sh9.23 billion targeted as the county reported the third-lowest annual collections since the start of the devolved system of government in 2013.
“Challenges affecting revenue include use of an outdated valuation roll, lack of automation for all revenue streams, offer of waivers and lack of adequate resources for revenue mobilisation,” City Hall says in the report.
The Kenyan capital recorded an increase in property rates collections from Sh1.72 billion last year and Sh1.97 billion in business permits from the 2017-18 figure.
[Full article: Business Daily, by John Mutua]
