The Senate County Public Accounts Committee (CPAC) has directed the Mombasa County Government to strengthen the collection of its own-source revenue after several key revenue streams failed to meet their targets in the 2024/25 financial year.
Appearing before the committee, Mombasa Governor Abdulswamad Sheriff Nassir cited enforcement challenges, public resistance, and an outdated valuation roll as some of the factors hindering the county's efforts to maximise revenue collection.
The governor revealed that Mombasa collected Sh883 million in land rates against a target of Sh1.4 billion, attributing the shortfall largely to difficulties in enforcement and the continued use of a valuation roll prepared in 1991.
However, Nassir rejected claims that revenue leakages within the county's collection system were responsible for the underperformance, insisting that the county operates a fully automated revenue collection system linked directly to its bank accounts.
The committee, chaired by Homa Bay Senator Moses Kajwang', noted that land rates remain one of the county's most problematic revenue streams and continue to contribute significantly to outstanding revenue arrears.
Nassir told senators that efforts to update the valuation roll have been delayed by court cases but said the county is digitising land records, working with the Registrar of Lands, and reviewing the valuation roll to improve collections.
The committee also raised concerns over cess revenue, where the county collected Sh520 million against a target of Sh780 million.
According to the governor, the shortfall resulted from disruptions and the relocation of some cess collection points, although collections were slightly higher than the Sh503 million realised in the previous financial year.
Single Business Permit revenue also came under scrutiny, prompting the county to initiate a digital mapping exercise aimed at identifying businesses operating within Mombasa and expanding the tax base.
Despite the concerns, the committee acknowledged that Mombasa has recorded steady growth in own-source revenue over the last three years. Collections rose from Sh3.9 billion in the 2022/23 financial year to Sh4.5 billion in 2023/24 and reached Sh4.8 billion by June 2025.
Governor Nassir attributed the growth to enhanced enforcement, prudent financial management, and improved revenue collection strategies implemented without increasing levies.
The governor appeared before the committee alongside County Executive Committee Member for Finance Evans Oanda and other senior officials to respond to audit queries and provide an update on the implementation of Senate recommendations arising from the Auditor-General's report for the financial year ended June 30, 2025.
Senator Kajwang' further called on the Senate Committee on Lands, Environment and Natural Resources to fast-track the operationalisation of the National Rating Act, 2024, saying it could help counties address longstanding challenges in land rates administration.
