Nairobi ,Friday 27th October 2023
Dr. Benjamin Kimolo, the Director of Research and Policy Development for Nairobi County, held a meeting with Commissioner Hadija Juma to discuss the Comprehensive Own Source Revenue (OSR) Potential and Tax Gap Study, conducted by the CRA in June 2022.
As per the CRA study, Nairobi has the potential to generate at least Kshs. 67 billion out of the total Kshs. 216 billion that all 47 counties could collectively generate annually. Although the county raised over Kshs. 10 billion in the previous year, they are aiming to double that amount to Kshs. 20 billion in the fiscal year 2023/24.
Dr. Kimolo stressed the importance of research to inform policy decisions and strategies for improving revenue collection in Nairobi. He also highlighted the need to enhance customer service and citizen compliance, saying, “We aim to create a well-organized city with a business-friendly atmosphere, encouraging residents and visitors to willingly contribute to fees and charges.”
The CRA is actively working to empower counties to meet or exceed their revenue targets and shares its research findings with them. The CRA commends the County for establishing a Research and Policy Development Directorate, which will collaborate with the CRA to distribute this report and conduct additional research to address revenue gaps.
This research will be pivotal in shaping the CRA’s future Revenue Potential Studies.