Higher levies as Nairobi seeks to clear Sh2bn budget deficit

A motorist argues with Nairobi parking attendants about higher fees. The increase in parking fees comes despite Governor Mike Sonko's promise, in his manifesto, to halve the current Sh300 charge. PHOTO | FILE | NATION MEDIA GROUP

What you need to know:

  • The fee for parking in the central business district will increase from Sh300 to Sh400.

  • Large body vehicles such as trailers will be required to pay Sh6,000 for offloading and parking, lorries Sh4, 000 and canters Sh2, 000.

  • Boda bodas operating in the city centre will be required to part with a monthly fee of Sh1,000 each while tuk tuks operating outside the CBD will have to pay Sh1,500 every month. 

  • Public Service Vehicles (PSVs) wishing to reserve space in the city centre will have to part with Sh250,000 annually.

Nairobi residents will from next month dig deeper into their pockets for levies if proposals by the county treasury are adopted by the assembly.

Key among the proposed charges is the fee for parking in the central business district (CBD), which will increase from Sh300 to Sh400.

PARKING FEES

This new development is contained in Nairobi’s revised Finance Bill, 2018 which was tabled before the Budget and Appropriations committee on Tuesday.

The revised bill – which the assembly has until November 27 to either pass or shoot down – seeks to introduce a raft of new and increased levies in a number of sectors to finance the county’s 2018/19 budget deficit of about Sh2 billion.

The increase in parking fees comes despite Governor Mike Sonko's promise, in his manifesto, to halve the current Sh300 charge. This will be the second time motorists will be hit hard as the former Governor Evans Kidero's administration increased the fees from Sh150 to Sh300.

Additionally, operators of large body vehicles such as trailers will be required to pay Sh6,000 for offloading and parking, while lorries will cost Sh4, 000 and canters Sh2,000.

For boda-bodas operations in the city centre, riders will part with a monthly fee of Sh1,000 each, while those who drive tuk tuks outside the CBD will pay Sh1,500 every month. 

A monthly fee of Sh250,000 will be required for space to be reserved in the city centre for Public Service Vehicles (PSVs).

GARBAGE FEES

At the same time, the county government has proposed a new garbage collection levy of Sh100 per month for houses in informal settlements such as Kibera, Mukuru and Dandora.

Households in middle-income estates such as Donholm, Buruburu and Pipeline will pay Sh300 every month for this service, whereas those in high-end estates such as Kileleshwa, Runda, Lavington and Kilimani will pay Sh500.

Learning institutions have not been spared. Those seeking to have day care, nursery and primary sections with over 850 students will pay up to Sh30, 000 per month for garbage collection.

Boarding primary, secondary, universities and colleges with more than 2, 000 students will part with up to Sh65,000 every month.

The County Treasury is also seeking to introduce new levies on ATM machines in the city and revise charges for billboards, gaming and lotteries.

BURDEN

However, committee chair Robert Mbatia decried the revised levies and said his team will ensure residents are not overtaxed for the county to meet the deficit.

“As elected members and a committee our first role is to represent members of the public. We understand that residents need quality services but we have to balance our finances to ensure they are not overtaxed,” said Mr Mbatia.

The Kariobangi South Ward Representative's sentiments were echoed by his Embakasi counterpart Michael Ogada, who implored the county executive to make the most of existing revenue streams instead of burdening residents further.

“The county cannot achieve its objective by overtaxing poor Nairobians. Performance has been dismal in some areas in revenue collection so there is room for improvement. That’s where they should source for funds,” said Mr Ogada.

Residents have until close of business on Friday to submit their views on the tax proposals in the bill. Witten memoranda can be dropped at the county clerk's office at City Hall.

The committee will hold public hearings on the matter between October 29 and October 30.