Kenya’s county governments rely on own-source revenue (OSR) to finance their development projects and services. While the national government allocates funds to counties, the ability to generate local revenue is a key indicator of economic strength and financial autonomy.
This article provides an in-depth analysis of the top 10 counties in Kenya based on their revenue collection trends over the years.
1. Importance of Own-Source Revenue (OSR)
Own-source revenue includes funds collected through: ✅ Property rates
✅ Business permits
✅ Parking fees
✅ Land transactions
✅ Market fees
✅ Other local levies
Counties that excel in revenue collection demonstrate strong economic activity, financial discipline, and good governance.
2. Top 10 Counties in Revenue Collection (2023/2024)
Below is a table showing the top revenue-generating counties in the 2023/2024 financial year, their total collections, and their percentage of total county revenue.
| County | Actual Revenue (Ksh) | Percentage (%) |
|---|---|---|
| Nairobi City | 12,542,094,418 | 21.28% |
| Mombasa | 5,585,024,010 | 9.47% |
| Narok | 4,753,670,486 | 8.06% |
| Kiambu | 4,575,831,607 | 7.76% |
| Nakuru | 3,321,300,479 | 5.63% |
| Machakos | 1,549,348,477 | 2.63% |
| Kisumu | 1,443,607,988 | 2.45% |
| Uasin Gishu | 1,421,327,951 | 2.41% |
| Nyeri | 1,407,546,107 | 2.39% |
| Kakamega | 1,347,833,279 | 2.29% |
| Total Revenue (47 Counties) | 58,948,601,257 | 100.00% |
3. Analysis of Top Performing Counties
a) Nairobi City County
🔹 Revenue Collected: Ksh 12.5 billion
🔹 Percentage of Total Revenue: 21.28%
🔹 Key Revenue Sources: Property rates, business permits, parking fees
🔹 Significance: Nairobi remains the economic hub of Kenya, hosting major businesses, government institutions, and multinational corporations.
b) Mombasa County
🔹 Revenue Collected: Ksh 5.5 billion
🔹 Percentage of Total Revenue: 9.47%
🔹 Key Revenue Sources: Port-related services, tourism, land rates
🔹 Significance: Mombasa benefits from the port, tourism, and logistics industry, making it one of the richest counties.
c) Narok County
🔹 Revenue Collected: Ksh 4.75 billion
🔹 Percentage of Total Revenue: 8.06%
🔹 Key Revenue Sources: Tourism (Maasai Mara), land fees, business licenses
🔹 Significance: Narok generates significant revenue from tourism and wildlife conservation efforts.
d) Kiambu County
🔹 Revenue Collected: Ksh 4.57 billion
🔹 Percentage of Total Revenue: 7.76%
🔹 Key Revenue Sources: Real estate, agribusiness, business permits
🔹 Significance: Kiambu, near Nairobi, benefits from rapid urbanization and industrialization.
e) Nakuru County
🔹 Revenue Collected: Ksh 3.32 billion
🔹 Percentage of Total Revenue: 5.63%
🔹 Key Revenue Sources: Tourism, trade, industrial activities
🔹 Significance: Nakuru is a fast-growing commercial hub with a booming real estate and transport sector.
4. Revenue Trends Over the Years
a) 2022/2023 Revenue Collection
- Nairobi County led with Ksh 10.2 billion (27.08%).
- Mombasa and Narok followed with Ksh 3.99 billion and Ksh 3.06 billion respectively.
- Total revenue collection for all counties was Ksh 37.8 billion.
b) 2021/2022 Revenue Collection
- Nairobi County generated Ksh 9.2 billion (25.73%).
- Mombasa and Kiambu followed with Ksh 3.6 billion and Ksh 3.1 billion respectively.
- Total revenue collection was Ksh 35.9 billion.
c) 2020/2021 Revenue Collection
- Nairobi County collected Ksh 9.95 billion (28.91%).
- Total county revenue stood at Ksh 34.4 billion.
5. Challenges in Revenue Collection
Despite the impressive figures, counties face several challenges in own-source revenue collection, including:
❌ Revenue Leakages & Corruption – Poor accountability and mismanagement reduce revenue collection.
❌ Low Compliance Rates – Some businesses evade paying taxes, affecting revenue targets.
❌ Weak Enforcement Mechanisms – Limited follow-up on defaulters and enforcement of revenue laws.
❌ Lack of Digital Revenue Systems – Some counties still rely on manual revenue collection, increasing inefficiencies.
6. Strategies to Improve Revenue Collection
✅ Automation of Revenue Collection – Adopting digital platforms to minimize fraud and leakage.
✅ Enhanced Compliance & Enforcement – Strengthening laws and penalties for tax evasion.
✅ Diversification of Revenue Sources – Expanding revenue base beyond traditional sources.
✅ Capacity Building – Training county revenue officers to improve collection strategies.
✅ Public Awareness & Sensitization – Encouraging businesses and residents to comply with tax obligations.
7. Future Projections for County Revenue Collection
Looking ahead, counties must enhance their revenue streams to reduce reliance on national government allocations. Key focus areas include:
- Investing in Smart Revenue Systems to track collections efficiently.
- Expanding business opportunities to attract investments.
- Enhancing transparency and accountability to boost public trust.
Conclusion
The top 10 counties in revenue collection continue to play a critical role in Kenya’s economic development. Nairobi remains the highest revenue-generating county, followed by Mombasa, Narok, Kiambu, and Nakuru.
By addressing revenue leakages, improving compliance, and embracing technology, counties can maximize their financial potential and accelerate local development.
