County Revenue Collection Up 19% as Digital Tax Systems Take Hold

Kenyan counties collectively collected Ksh112 billion in own-source revenue in FY2023—a 19% increase—thanks to digital tax platforms like eTIMS and county-specific apps. Nairobi led with Ksh32 billion, followed by Mombasa (Ksh14B) and Kiambu (Ksh9B). Key revenue streams included property rates, entertainment taxes, and business permits, now paid via M-Pesa and cards. The Council of Governors reported that automation reduced leakages by 35% and improved compliance. However, disparities persist: 15 arid counties still rely on over 60% of their budgets from national transfers. The national government plans to support lagging counties with shared digital infrastructure by 2025.