Nairobi Governor Johnson Sakaja defended the Nairobi Pay digital platform, saying it is the key driver behind the city’s record revenue performance.
Appearing before the Senate County Public Accounts Committee, Sakaja said the system has transformed how the county collects revenue by sealing leakages, eliminating human interference, and simplifying business processes.
“Nairobi Pay was developed in collaboration with the Ministry of ICT and was introduced to Nairobi City County by the Nairobi Metropolitan Services. The system has helped us raise our own-source revenue from KSh 10.8 billion to KSh 13.8 billion in just three years the highest since devolution,” Sakaja told senators.
He described Nairobi Pay as a secure, fully digitised system that has significantly reduced losses across all streams.
“We have digitised every revenue point to bring leakage down to zero, and this has greatly improved collections,” he said.
He added that similar systems could help other counties and national government agencies eliminate revenue leakages.
Sakaja also highlighted the impact of the Unified Business Permit, introduced to streamline business licensing.
He said the permit merged multiple licenses into one, making it easier and faster to start and operate a business in Nairobi.
“You no longer need many licenses. The Unified Business Permit covers all services, and you apply directly on Nairobi Pay. This reform alone has contributed to our Sh3 billion revenue growth,” he added.
He assured the Senate that ongoing digitisation and revenue reforms will continue strengthening Nairobi’s financial position and expand its development capacity.
However, Sakaja warned that the county is still far from reaching its full potential. He noted that Nairobi could collect up to Sh60 billion annually if deep-rooted challenges in land-rates compliance are addressed. Despite the historic revenue gains, he said the county is only collecting from 50,000 out of 250,000 land parcels, leaving 200,000 properties outside the revenue bracket.
Sakaja said the newly enacted National Rating Act provides a pathway to fix this problem.
“The law modernises valuation, broadens who is required to pay rates, and gives counties stronger enforcement powers. Under the Act, defaulters can receive a 60-day demand notice, face penalties, lose access to county services, or face legal action including liens or, in extreme cases, auction of the property,” he explained.
He added that full implementation of the Act, together with correcting distortions such as bungalows and apartments paying similar rates despite vast land differences, will enable Nairobi to bring all 250,000 parcels into the rating system.
“If that happens, the city could multiply its revenue base and unlock development that has been delayed for years,” Sakaja said.
The Governor also noted that the county has begun regularising unauthorised developments to create a transparent, fair framework that aligns informal constructions with county planning laws. The exercise is expected to improve safety, ensure structural integrity, promote orderly development and increase revenue.
Senators asked the County Government to deal with exorbitant processing fees charged by commercial banks.
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