Politics & Governance12 Oct 2026 · about 6 min

Counties should collect Sh100bn unpaid levies

The brief

County levies, fees, and rates are local charges used to raise money for devolved governments. They include land rates, property rates, way-leave fees, and advertisement fees. Businesses, homes, and individuals are required to pay them when they owe such charges to their counties. The article gives Nairobi as a clear example. It says the capital has Sh51.34 billion in unpaid land rates, its most important revenue stream. Other counties also face unpaid charges from property owners, businesses, and other individuals. These payments help counties fund daily operations and public services. When people and businesses do not pay, counties lose cash and struggle to deliver services. Better revenue administration, automation, enforcement, and debt collection could reduce defaults and improve county finances.

What are county levies, fees, and rates, and who is required to pay them?

The article gives Nairobi as a clear example. It says the capital has Sh51.34 billion in unpaid land rates, its most important revenue stream. Other counties also face unpaid charges from property owners, businesses, and other individuals.

These payments help counties fund daily operations and public services. When people and businesses do not pay, counties lose cash and struggle to deliver services. Better revenue administration, automation, enforcement, and debt collection could reduce defaults and improve county finances.

How much money is owed to Kenya’s counties, and which counties account for most of the debt?

Businesses, homes, and individuals owe Kenya’s 47 counties a combined Sh100.38 billion in unpaid levies and fees. This is a major cash-flow problem because counties need their own revenue to support daily operations and deliver services. The debt also adds to delays in funding from the National Treasury.

Nairobi accounts for the largest share. The Controller of Budget’s office says the capital represents 58 per cent of the total, or Sh59.9 billion. Nakuru has the second-largest debt, at Sh12.57 billion, equal to 12.5 per cent. Kiambu follows with Sh4.82 billion, or 4.8 per cent.

The figures show that county debt is concentrated heavily in a few counties. Recovering these unpaid amounts could provide substantial additional revenue. It could also reduce pressure on national transfers and help counties deliver services more reliably.

Which county charge is most widely unpaid, and how much does Nairobi owe in land rates?

Land rates are the county charge most affected by non-payment. They are a key revenue stream for counties, helping them finance operations and public services. When landowners do not pay, counties lose money they are expected to raise locally.

Nairobi illustrates the scale of the problem. The article reports that the capital is struggling with Sh51.34 billion in unpaid land rates. Nairobi also holds Sh59.9 billion of all unpaid county levies and fees, showing how strongly land-rate debt contributes to its wider revenue challenge.

The unpaid balance reflects broader weaknesses in county revenue collection. The article points to inefficient administration, weak enforcement of revenue laws, and limited automation. Stronger collection systems could reduce defaults, improve cash flow, and give counties more money for services without relying as heavily on National Treasury transfers.

What happens to public services such as healthcare and education when counties cannot collect the revenue they are owed?

When counties cannot collect money owed to them, their cash flow suffers. The article says these defaults hamper the delivery of critical services. Counties then have less money available for daily operations, staff payments, and services such as education and healthcare.

The problem is especially serious because most devolved units heavily rely on the National Treasury. If local revenue is not collected and national transfers are delayed, county governments face a tighter financial squeeze. Their ability to keep operations running and support public services is weakened.

The article links better revenue collection to improved service delivery. Automation, stronger enforcement, and effective debt-collection strategies could increase available funds. Cutting costs and using more innovative measures could also help counties raise own-source revenue and reduce the disruption caused by unpaid charges.

Why do counties depend heavily on money from the National Treasury even though they are expected to raise some of their own revenue?

Counties are expected to raise some money themselves, but they are not collecting enough. In the year ended June 2026, they collected Sh55.69 billion in own-source revenue against a target of Sh108.4 billion. That shortfall limits their ability to finance operations and services independently.

The article identifies several causes. Counties face inefficient revenue administration, weak enforcement of revenue laws, and limited automation. They also have Sh100.38 billion in unpaid levies and fees. These problems reduce cash flow and make it harder to pay staff, run daily operations, and support education and healthcare.

As a result, most counties rely heavily on the National Treasury. The article says stronger systems could reduce defaults and leakages. Counties also need to cut costs, pursue debt collection, and use innovative measures to increase own-source revenue and reduce dependence on national funding.

What role does the National Treasury play in county finances, and how do delayed transfers worsen counties’ cash-flow problems?

The National Treasury is a major source of money for Kenya’s 47 counties. It provides transfers that counties rely on to run daily operations, pay staff, and deliver services. The article says most devolved units depend heavily on this national funding because their own-source revenue is insufficient.

The Treasury routinely fails to release funds on time. In some cases, transfers lag by several months. At the same time, businesses, homes, and individuals owe counties Sh100.38 billion in unpaid levies and fees. Counties therefore face delayed national money and weak local collections together.

This combination creates serious cash-flow pressure. Counties may struggle to maintain operations and provide services while waiting for transfers and unpaid local revenue. Improving the timing of Treasury releases would help, but counties must also strengthen collection, enforcement, automation, and debt recovery to build more reliable finances.

How can automation, stronger enforcement, and debt-collection strategies help devolved governments raise revenue and reduce dependence on national government funding?

Automation can make county revenue systems more efficient and help reduce leakages. It can support the tracking and collection of charges such as land rates, property rates, way-leave fees, and advertisement fees. Stronger enforcement of revenue laws can also encourage people and businesses to pay what they owe.

Debt-collection strategies target the Sh100.38 billion already outstanding. Nairobi, for example, is owed Sh51.34 billion in unpaid land rates. Recovering even part of such debts would improve county cash flow. Better systems could also reduce the administrative weaknesses that contributed to counties collecting only Sh55.69 billion against a Sh108.4 billion target.

The wider goal is greater financial independence. Counties could use recovered and newly collected revenue to run operations, pay staff, and support education and healthcare. The article also calls for cost cuts, incentives, reduced rates, and other innovative measures to increase own-source revenue.

This brief was written by AI from the original reporting and checked by other models. Names, figures and quotes come from the source; read it for full context.