Kenya: KRA to Take Over Nairobi County Revenue Collection

26 February 2020

Nairobi — The Kenya Revenue Authority is set take-over the revenue collection in Nairobi once an agreement signed Tuesday to surrender key county functions back to the national government takes effect on March 25.

According to a Special Gazette Notice detailing how the transfer was executed, KRA will be the principal revenue collector in the capital city, taking charge of parking fees, business licenses, land lease fees and buildings' approval charges.

Notice which makes public the Deed of Transfer signed by Nairobi Governor Mike Sonko and Devolution Cabinet Secretary Eugene Wamalwa states that the agreement which was signed at State House Nairobi and witnessed by President Uhuru Kenyatta, Senate Speaker Ken Lusaka gives the National Government the responsibility of collecting and remitting all revenues accruing from the transferred functions.

It will come into effect in 21 days from the date of the execution.

The landmark agreement which was made public by State House Spokesperson Kanze Dena-Mararo will see National Government take over the operations relating to County Health Services, County Transport Services, County Public Works, Utilities and Ancillary Services and County Government Planning and Development respectively.

The Deed of Transfer of Functions further states that the functions shall be drawn from either or both the Consolidated Fund and the County Revenue Fund.

"The Nairobi City County Government shall ensure that the transferred functions are fully funded from the County Revenue Fund. The level of funding for each transferred function shall be determined by the National Government in consolation with the County Government, but in any case the budgetary allocation shall not be less than the amount last appropriated by the County Assembly in the preceding financial year," the Deed reads in part.

According to the Gazette Notice, the National Government and Nairobi County Government shall review the performance of the transferred functions as it remains in force for an initial renewable period of 24 months from the date of execution.

Human Resources

As regards, human resource allocation the Deed of Transfer states 'the Nairobi County Public Service Board shall in consolation with the Public Service Commission formulate the necessary human resources'.

"The National Government shall carry out a comprehensive capacity assessment in line with Article 190 of the Constitution, as read with Section 121 of the County Governments Act, 2012: and in addition to the capacity building measures identified in the Capacity Assessment and Rationalization of the Public Service Programme Review Report (CARPS), the Parties shall develop a capacity building programme.

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