Which counties in Kenya pay the most in taxes? The answer reveals significant economic activity concentrated in a few key counties. According to the Controller of Budget, Kenyan counties generated a record KSh 58.9 billion in own-source revenue during FY 2023/24 — funding essential local services
Top 10 Tax-Contributing Counties (FY 2023/24)
| Rank | County | OSR Collected (KSh) | % of Total | Primary Sources of Revenue* |
|---|---|---|---|---|
| 1 | Nairobi | 12.54 billion | 21.3% | Parking, business permits, levy, health/user fees |
| 2 | Mombasa | 5.59 billion | 9.5% | Land rates, parking, health, cess |
| 3 | Narok | 4.75 billion | 8.1% | National parks levies (4.3 b), cess, permits |
| 4 | Kiambu | 4.58 billion | 7.8% | Health services, property, ERP rollouts |
| 5 | Nakuru | 3.32 billion | 5.6% | Health facilities improvement, other fees |
| 6 | Machakos | 1.55 billion | 2.6% | Permits, market fees, parking |
| 7 | Kisumu | 1.44 billion | 2.4% | Health/user fees, permits |
| 8 | Uasin Gishu | 1.42 billion | 2.41% | Agricultural levies, health, ERP-driven collections |
| 9 | Nyeri | 1.41 billion | 2.39% | Health/user fees, market permits |
| 10 | Kakamega | 1.35 billion | 2.29% | Market and transport levies |
*Primary sources are based on official reports from the Controller of Budget and county financial statements.
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Mid-Range and Lower-Tier Counties
- Kilifi, Homa Bay, Kisii, Bungoma, Murang’a, Laikipia, and Kajiado each collected between KSh 1 billion – 1.21 billion
- The bottom 10 counties—like Tana River (KSh 92 million), Marsabit (KSh 145 million), and Wajir (KSh 165 million)—each contributed less than KSh 200 million, showing stark disparity
Trends & Performance
- Overall, counties achieved 72.8% of their annual OSR target (KSh 80.9 billion)—a 55.9% increase from the previous year
- Nairobi alone accounted for 22% of nationwide county revenue, outperforming 30 lower-earning counties combined
- Exceptional performers:
- Turkana reached 241% of its annual target (KSh 530 million vs. KSh 220 million)
- Vihiga, Kirinyaga, Lamu, and Nandi collected over 110% of target—mainly through health and facility fees
Geo-Relevance & Economic Impact
- Urban economic hubs (Nairobi, Mombasa, Nakuru, Kisumu) naturally collected more due to higher economic activity.
- Tourist counties like Narok and Laikipia benefited from levying fees in national parks and game reserves.
- Agricultural and healthcare revenue were critical revenue streams—especially through the Facility Improvement Fund (FIF)
- Counties with lower revenue have more room for growth—investing in tax admin, e‑invoicing, and local enterprise could narrow this gap.
Policy Recommendations
To improve county revenue:
- Replicate success models: counties like Turkana and Vihiga should share practices on exceeding revenue targets.
- Expand digital systems: ERP platforms, e-permits, and centralized billing help boost efficiency (as seen in Kiambu).
- Diversify revenue streams: leveraging tourism, agriculture, health facility charges, and community services.
- Strengthen capacity building and anti-corruption measures to preserve public trust and compliance.
Which counties in Kenya pay the most in taxes? Nairobi leads by a wide margin, followed by Mombasa, Narok, Kiambu, and Nakuru—together forming the bedrock of county revenues. With all counties improving, Kenya is setting a strong foundation for devolved service delivery.
Continued investment and innovation in revenue generation will ensure even rural and agricultural counties contribute more fully to Kenya’s development.
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