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Supporting Revenue Enhancement in Kiambu County, Kenya Discussion Paper #8
Increased demand for services and economic opportunities necessitates improvement of revenue generation. In this regard, Kiambu county government sought advisory and technical support from a range of stakeholders including UN-Habitat. In 2014, a joint county-UN Habitat revenue assessment was conducted. Findings of the assessment set forth the direction for subsequent technical support and a program for short and long term interventions. One key suggestion was to establish a dedicated office for revenue management. Centralized management of collections will enable proper monitoring and uniformity across the sub-counties. It is also critical to have a senior professional, serving as a director for this office, to manage the revenue collection process. Furthermore, introduction of “zonation” based land rating was proposed in order to improve the collection of land based taxes. Subsequent simulations conducted indicate a high revenue potential of land taxation in Kiambu, which could cover over 50% of the current expenditures. To take advantage of this potential, administrative reforms, as well as automation, were suggested and partially adopted, and have been a key factor in having a positive impact on revenue collection.