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Nairobi County has unveiled an ambitious plan to expand its tax base and enhance revenue collection by formalising informal street-side businesses and upgrading digital payment systems.
The strategy, unveiled during a Finance and Economic Affairs sector workshop, seeks to help the county achieve its own-source revenue target of Sh21 billion for the 2025/26 financial year.
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A key focus of the plan is bringing informal enterprises — including Maasai markets, roadside vendors, eateries, salons, and repair shops — into the tax net. County officials said the initiative will widen the pool of compliant taxpayers and reduce dependence on a small number of existing contributors.
Revenue Administration Chief Officer Tiras Njoroge said each ward and subcounty will be responsible for identifying and registering businesses within their jurisdictions. He emphasized that data-driven approaches will guide the county in prioritizing “high-yield” revenue sources, applying the 80/20 rule where 80 per cent of returns come from 20 per cent of sources.
To improve compliance, the county is also scaling up use of digital payment platforms, notably the NairobiPay system, to streamline tax remittances and enhance transparency. More payment points and customer service centres have been established in areas such as Umoja 1, Ruai, and Dandora to ease access to registration and payment services.
“We are not introducing new taxes,” Njoroge clarified. “Our focus is on strengthening systems and improving compliance.”
Finance Executive Asha Abdi called for realistic budgeting based on actual revenue performance rather than inflated targets. She noted that the county has only achieved 50–60 per cent of its targets in recent years, collecting Sh13.8 billion in 2024/25 against a Sh20 billion goal.
Abdi stressed the need to align spending with verified income streams and to ensure fiscal discipline.
To support the plan, the county will conduct public awareness campaigns to sensitize traders on the benefits of formalization and digital payment systems. Departments will be required to conduct quarterly revenue reviews and submit progress reports, while enforcement teams will ensure compliance and penalize defaulters.
Officials expressed optimism that expanded registration, stronger digital infrastructure, and consistent enforcement will help Nairobi close the revenue gap and meet its Sh21 billion target.
