Nakuru’s Own Source Revenue (OSR) grew by Sh1.75 billion in the last financial year marking a 47.7 percent increase from 2024/2025.

Governor Susan Kihika said OSR has risen steadily over the past few years rising from Sh3.65 billion in 2023/2024 to Sh5.4 billion in 2024/2025 reflecting a tremendous increase above the target her administration had set.

Kihika hailed the County Assembly for providing legislative support and oversight to ensure resources are utilized prudently and projects carried out that benefit the people of Nakuru.

In a statement, the Governor noted that the implementation of a fully cashless revenue collection system has begun to pay substantial dividends with own- source revenue improving substantially.

The cashless system was introduced as a strategic reform to strengthen accountability, curb corruption and modernize the county’s financial management framework. This,  Ms Kihika noted, has significantly boosted the county’s revenue performance.

She praised the notable progress, attributing the achievement to strategic policy decisions, dedication of revenue officers, and robust efficiency of the digital revenue collection system.

“We have recorded a remarkable 44.7 per cent increase in Own-Source Revenue compared to the same period last year,” Ms Kihika stated. “This performance is not only a testament to the county’s steady economic growth but also reflects our firm commitment to sustainability and public sector reform.”

The Governor emphasized that the leap in revenue collection is the result of two key pillars: the streamlining of revenue collection through cashless systems and the diversification of income sources across various sectors within the county.

She further highlighted that the county’s growing revenue base enhances its ability to invest in critical public services and infrastructure, with the overarching goal of improving the quality of life for Nakuru residents.

“By effectively harnessing local resources and expanding revenue streams, we are building a stronger financial foundation that allows us to reinvest directly into the development needs of our communities,” she said.

Ms Kihika added “This increase in revenue collection is a testament to the county’s resilience and effective revenue management strategies.”

The milestone underscores the impact of a series of reforms introduced by the county administration to seal revenue leakages, digitize revenue collection, simplify compliance and expand the revenue base without imposing new taxes.

The county has also implemented the Unified Business Permit, which consolidates several business licenses into a single permit. The reform has reduced bureaucracy, lowered compliance costs and improved the ease of doing business, encouraging more entrepreneurs to formalize and expand their enterprises in the capital.

“The new governance model has strengthened accountability, improved financial management and enhanced revenue collection across all departments while ensuring better service delivery for Nairobi residents,” Ms Kihika said.

Governor Kihika attributed the record-breaking performance to deliberate reforms anchored on technology, accountability and customer-friendly service delivery.

“This record revenue collection demonstrates that when the government embraces technology, seals loopholes and makes compliance easier for wananchi and businesses, revenues grow without introducing new taxes,” she said.

“Every shilling collected will go back into improving roads, health services, markets, drainage, street lighting and other essential services that Nakuru residents deserve.”

She said the county’s digital transformation has been instrumental in boosting collections while strengthening public confidence in the revenue system.

“The success we are witnessing is the result of sustained reforms that have digitized revenue collection, eliminated leakages and simplified payment processes,” Ms Kihika said.

“Our focus remains on expanding the revenue base, improving compliance and ensuring every payment is secure, transparent and convenient for residents and businesses alike.”

The record collection is expected to strengthen Nakuru’s fiscal position, enabling the county to finance critical development projects, improve service delivery and reduce its dependence on transfers from the national government.

The achievement represents the strongest own-source revenue performance in Nakuru County’s history and reinforces the county’s strategy of growing revenue through efficiency, digitization and better compliance rather than increasing taxes.

Land rates, hospital revenue, business permits, parking fees and building approvals pushed the devolved units OSR collection up since the introduction of devolution in 2013.

Data released by the County Government shows the amount is the highest own-source revenue collected by the county in a single financial year since county governments were established.

Ms Kihika said the county had widened its revenue base and improved compliance without introducing new taxes.

She linked the improved collections to digital payment platforms, which she said had removed cash transactions, improved transparency and made it easier for residents and businesses to pay for county services.

“Digitization has brought transparency, convenience and accountability to revenue collection. By eliminating cash transactions and digitizing payments, we have sealed loopholes, improved efficiency and made it easier for residents and businesses to pay for county services. This is proof that technology can increase revenue without increasing taxes,” Ms Kihika said.

She also pointed to changes made in the health sector, including the placement of Level 4 and Level 5 hospitals under professionally recruited chief executive officers supported by hospital boards.

According to the governor, the reforms have strengthened accountability, improved financial management and increased revenue collection while also improving service delivery.

The county has also moved liquor licensing services online through a digital payment system, allowing traders to apply for and pay for licenses digitally.

“Our bold steps in automation of revenue collection systems, integration of payment systems, teamwork and stronger Facility Improvement Funds are delivering results. We are aiming higher, driving growth, unlocking opportunities, and strengthening Nakuru County’s economy for every resident,” stated the Governor.

The system has reduced reliance on brokers while improving efficiency, transparency and compliance in the licensing process.

Ms Kihika noted that County Governments have the potential to generate Sh260 billion annually in their own source revenue but continue to underperform due to inefficiencies in revenue collection, weak enforcement and unrealistic projections.

She emphasized the urgent need for counties to become financially self-reliant.

She stressed the need for counties to reduce overdependence on equitable share transfers from the national government, which currently funds 80 per cent of county budgets. She noted that internally generated revenue stands at 13 per cent, despite the vast potential for growth.

“We must rethink our approach to revenue collection and adopt best practices in revenue administration. Counties such as Mombasa, Murang’a, Homa Bay and Nakuru that have implemented robust reforms have demonstrated that OSR growth is achievable through effective policies, digitalization and strategic enforcement,” Ms Kihika said.

By Jane Ngugi and Jefther Afuyo