SH42BN BUDGET

Sakaja targets alcohol premises, EV stations for more revenues

City Hall plans to double licence fees from Sh25,000 to Sh50,000 per year

In Summary

• Car gas refilling stations will have to pay between Sh10,000 and Sh50,000 as fire inspection compliance certificate fee, depending on the number of nozzles

• Rental charges for all types of stalls in the various markets in Nairobi will be increased by 10 per cent if the bill is passed as it is

Nairobi Governor Johnson Sakaja attending a church service at AIPCA Bahati Cathedral in Nairobi on July 16, 2023
Nairobi Governor Johnson Sakaja attending a church service at AIPCA Bahati Cathedral in Nairobi on July 16, 2023
Image: NCCG

Premises selling alcoholic drinks in Nairobi will have to dig deeper into their pockets as City Hall proposes to double their licence fees.

This is among the proposals in the Nairobi City County draft Finance Bill, 2023, currently before the Nairobi County Assembly Budget and Appropriations Committee for consideration.

City Hall proposes to double the licence fee for premises selling alcoholic drinks from the current Sh25,000 per year, while the off-licence will also be doubled from the current Sh12,000.

The bill also proposes that gas plant refilling stations will pay Sh50,000 annually, while gas depots will part with between Sh20,000 and Sh50,000, depending on their size.

The Governor Johnson Sakaja-led administration is also targeting electric vehicle charging stations

It will cost between Sh4,500 and Sh10,000 annually, depending on the number of charging ports.

Car gas refilling stations will have to pay between Sh10,000 and Sh50,000 as fire inspection compliance certificate fee, depending on the number of nozzles.

The new revenue-raising measures, which will see Nairobi residents dig deeper into their pockets, are aimed at raising Sh19.9 billion in own-source revenue for the county government in the current financial year.

For food handlers' medical certificate, City Hall proposes to increase charges from Sh1,000 to Sh1,500, while acquiring public health clearance for water bowsers per truck and effluent discharge permit per outlet will now go for Sh10,000 annually.

Small daycare with less than 20 babies will have to pay Sh2,000 institution inspection fee, which doubles for those with more than 20 babies.

Rental charges for all types of stalls in the various markets in Nairobi  will be increased by 10 per cent if the bill is passed as it is.

For self-constructed hotels/butcheries in Kariobangi South market, the proposed charge is Sh880. For Ngara market and its extension, the charge will be Sh3,250, as well as in Quarry, Umoja One and City Park markets.

For Githurai market, there is a proposal for a new charge of Sh13,750 and Sh5,500 for hotels/butcheries annually.

Rental stall owners in Kangundo Road will pay Sh2,000 for stall type A, Sh2,500 for type B and Sh5,000 for hotels/butcheries.

Mobile taxi service provider licence for on-boarded vehicles below 50 is proposed to double from Sh50,000 to Sh100,000, and for those between 51 and 99, the fee is set to increase from Sh100,000 to Sh200,000 annually, while for those above 100, the charge will increase from Sh300,000 to Sh500,000.

Transport sacco or taxis licence will cost Sh50,000 annually, while licence for saccos with more than 51 vehicles will cost Sh200,000, up from Sh160,000.

For those with between 31 and 50 vehicles, they will attract an increment of Sh50,000 from the current Sh100,000 annually. Those with between six and 30 vehicles will pay Sh50,000 from Sh36,000, same as the small transport saccos, which have seen the fee double. Those with a single vehicle will part with Sh25,000, down from Sh15,000.

Sakaja's first budget of Sh42.3 billion is the highest-ever since devolution.

It is an increase from Sh39.63 billion for the financial year 2022-2023.

Sakaja aims to collect Sh19.9 billion own source revenue in the financial year 2023-24.

While making the budget statement reading, Finance executive Charles Kerich said Sakaja’s Sh42.3 billion comprises Sh28.3 billion for recurrent and Sh14 billion for development expenditures.

“The financial year 2023-24 outlines the policy priorities of the county government geared towards economic turnaround and inclusive growth, while at the same time navigating through restoring order, dignity hope and opportunity for all,” he said.

"Special focus will be placed on the interventions that touch on infrastructure, health care, environment, schoolchildren, the youth and expanding the tax base for more revenue to finance development."

He said the county’s strategies will involve putting more focus on sectors envisaged to have the largest impact on the livelihood of Nairobians.

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