City Hall is set to register roadside vendors in an initiative aimed at broadening the tax base
Nairobi County has initiated an ambitious campaign to register informal traders and enhance its revenue systems, striving to achieve a Sh21 billion target for own-source revenue in the 2025-26 financial year. The county indicates that the strategy will concentrate on expanding the tax base by formalizing small businesses and fully integrating digital payment platforms. The approach was deliberated during a high-level meeting organized by the Finance and Economic Affairs department to assess revenue collection strategies and synchronize sectoral efforts. The forum assembled heads of departments, subcounty administrators, and revenue officers responsible for devising innovative methods to boost county income. County officials noted that numerous small enterprises, such as food kiosks, salons, garages, and open-air markets, have functioned for years outside the tax framework. The administration now aims to identify, register, and incorporate every business into the county’s tax database. “We must expand our customer database,” stated Tiras Njoroge, chief officer for Revenue Administration. “This is the only way we can reduce our dependence on the same few compliant businesses.” Each ward and subcounty has been instructed to map businesses operating within their jurisdictions and submit verified records to the central revenue unit. According to Njoroge, the county plans to utilize data-driven strategies that pinpoint “high-yield” revenue streams, adhering to the 80-20 principle, where a small percentage of sources generates the majority of revenue. To enhance convenience and transparency, the county intends to fortify the NairobiPay platform and increase the number of payment points throughout subcounties. Officials mentioned that digital payments would assist in closing loopholes and ensuring that collections are traceable. “We are not implementing new levies,” Njoroge emphasized. “We are enhancing compliance through improved systems and processes.”
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