Nakuru County’s Own-Source Revenue (OSR) increased by 47.7% in the 2024/2025 financial year, reaching Sh5.4 billion, according to Governor Susan Kihika. This marks a Sh1.75 billion rise from the previous fiscal year, surpassing the administration’s target and reflecting sustained growth since 2023/2024, when OSR stood at Sh3.65 billion. The governor attributed the surge to strategic reforms, including the adoption of a cashless revenue collection system, which has enhanced accountability and curbed corruption.
Governor Kihika praised the County Assembly for its legislative oversight, which ensured prudent resource allocation and project implementation. She emphasized that the cashless system, introduced as part of broader financial modernization efforts, has significantly improved revenue performance. “This 44.7% year-on-year increase underscores our commitment to sustainability and public sector reform,” she stated, highlighting the system’s role in boosting transparency and efficiency.
The county’s revenue growth stems from two pillars: digitization of collections and diversification of income streams. Kihika noted that sectors such as land rates, hospital revenue, business permits, parking fees, and building approvals contributed to the rise. The Unified Business Permit, which consolidates multiple licenses into a single application, has reduced bureaucratic hurdles and lowered compliance costs for entrepreneurs, fostering economic activity.
The governor also credited the digital transformation for strengthening public confidence in the revenue system. By eliminating cash transactions, the reforms have sealed loopholes and streamlined payments, making it easier for residents and businesses to access county services. “Technology, when paired with accountability and simplified compliance, drives revenue growth without new taxes,” she said, citing the success of the digital payment platforms.
Nakuru’s fiscal gains are expected to bolster its ability to fund critical infrastructure and public services. Kihika outlined plans to reinvest in roads, health facilities, drainage, and street lighting, aiming to improve quality of life for residents. The county’s focus on efficiency and digitization has also extended to the health sector, where professional leadership and hospital boards have enhanced financial management and service delivery.
Despite the progress, Kihika warned that counties across Kenya remain underperforming, with only 13% of budgets derived from internal revenue. She called for broader adoption of best practices, pointing to Nakuru’s model as proof that reforms can unlock Sh260 billion annually in OSR. “Reducing reliance on national transfers is urgent,” she stressed, noting that 80% of county budgets currently depend on equitable share allocations.
The governor’s remarks come amid a push to expand revenue bases through automation and strategic enforcement. Initiatives like online liquor licensing and integrated payment systems have improved compliance while reducing reliance on intermediaries. Kihika concluded that Nakuru’s achievements demonstrate the potential for counties to achieve financial self-reliance through innovation and accountability, ensuring sustainable development for all residents.
Nakuru County's Own-Source Revenue Surges 47.7% Amid Reforms, Governor Credits Digital Shift