The study heavily focused on investigating the impact imposed by tax administration on the generation of local revenues in KCCA Central Division. The study was guided by the research objectives, questions and the appropriate methodologies that generated credible and reliable findings that was very significant to government and non-government actors as a guide in the advocacy and formulation of policies and programs geared improving local tax management and utilization for community development. The study found out that there is a close correlation between tax administration and the generation of the local revenues KCCA Central Division. The study also found out a number of laws and policies that guided the collection and expenditure of local revenues and most sections of these laws were found incapacitating to the local tax administrators. Therefore, to improve the local revenue generation, the study recommended to intensify the fight against corruption and others factors that undermine tax collection and management, digitalizing of the tax management system among others for effective realization of the annual revenue targets. The division should embrace better means of local tax collection such as contracting out to private firms the tax collection functions, digitalizing the tax and local revenue generation, publicprivate partnerships among others to minimize losses.