Tough times for city dwellers as Sakaja assents to new taxes

City motorists, boda boda riders and club owners are among those to be hard hit by new taxes after Nairobi Governor Johnson Sakaja assented to the county's Finance Bill 2023.

The Bill which is now an Act, introduces new levies aimed at raising Sh19.9 billion in own-source revenue for the county government in the financial year ending June 30, 2024.

Sakaja who assented to the Bill on Friday, said it is a groundbreaking piece of legislation for the city given the absence of a comprehensive finance act for many years.

But it will be some good news for politicians, preachers and women after the proposals to have them taxed for using public grounds across the city were removed.

The county had initially proposed that those who want to use Jacaranda and Kamukunji grounds will pay some fee. Religious leaders planning to hold rallies and crusades were to part with Sh20,000 for each day they intend to hire the facilities.

It was to cost politicians Sh100,000 for intending to use Kamukunji grounds for rallies.

While those charges were scrapped off, the preachers and politicians will still have to get a permit from City Hall to use the grounds.

It's also a win for women as they will not be forced to dig deeper into their pockets to receive family planning services.

Governor Sakaja said women in Nairobi were totally against the increase in levies.

"We had initially proposed new charges on reproductive health but, during the public participation, the public expressed their views and we heard and maintained and reduced some of the charges," he said.

Alternative Provision of Basic Education and Training Schools have been paying Sh10,000 annually which has been reduced to Sh3,000 with an alternative of Sh1000 shillings per term.

Sakaja said the move will cushion APBET schools as they play a vital role in providing basic education to the children of Nairobi.

Club owners however, have nothing to smile about following the increase in alcoholic drinks and licensing. The governor said most residents during public participation proposed for the high charges, a move that seeks to control alcoholism and drug abuse.

The parking regulations underwent significant changes, with the introduction of well-defined parking zones.

This means motorists' pockets have also been raided where they have to pay more as the city is set to adopt new technologies to ensure residents receive value for their money.

Currently, parking charges are Sh200 daily.

In the new Finance Act 2023, for areas around mosques in both Zone I and Zone II, motorists will enjoy free parking for two hours (12:30pm to 2:30pm) on Fridays only.

Motorists in Zone I  and II areas will pay Sh100 for the first hour of parking.

Motorists who intend to stay longer will pay Sh50 for the subsequent hours they park in  Zone I and Sh100 for Zone II.

Zone I areas include Kijabe Street, Westlands, Upperhill, Community, Ngara, Highridge, Industrial Area, Gigiri, Kilimani, Yaya Centre, Milimani, Hurligham, Lavington, Karen, Eastleigh, Gikomba and Muthaiga.

Areas considered to be part of Zone II are on-street parking at commercial centres and county market parking that is not automated ( not included in Zone 1).

It said it had already automated Sunken Car Park, Nairobi Law Courts Parking, Desai Road and Machakos Bus Station in line with the directive by Former President Uhuru Kenyatta to have automated hourly car parking facilities in three areas in Nairobi.

On-street parking in non-automated areas in Zone I parking is set to increase from Sh200 to Sh300 daily for saloon cars.

Vans and pick-ups will be charged Sh500 from Sh200, lorry (up to 5 tons) and Minibus will have to part with Sh1,000 while lorry carrying weight above 5 tons will pay Sh3,000 for parking.

Buses which are not Public Service Vehicles will pay Sh1,000 for on-street parking in non-automated areas in zone I.

For Zone II,  salon car drivers will enjoy low parking fees of Sh100 from Sh200 while charges for vans and pickups have increased from Sh200 to Sh300.

Lorries carrying weight up to 5 tons will pay Sh500 while those carrying tons above 5 tons will pay Sh2,000 for parking from the current Sh1,000.

Buses that are not PSV will enjoy Sh500 parking which is a decrease from Sh1,000.

The Finance Act, 2023, has also introduced new charges for the registration of boda bodas and taxis.

Taxi drivers will now be forced to pay Sh1,500 as a registration fee annually while Sh1,000 will apply to boda boda operators.

Advertisers will also have to pay more as the Act has increased application fees for outdoor advertisement and signage.

The levies vary in terms of the location of the advert, period of running and also the size.

The Act also tackled the crucial revenue source of physical planning, land, and housing. Although an initial proposal sought a 25 per cent rent increase, it was subsequently reduced to 10 per cent following consultations with stakeholders.

City Hall will publish a comprehensive schedule of all fees and charges contained in the Act and previous Finance Acts in one document for ease of reference by residents.

Sakaja is banking on the new Finance Act to collect revenue and deliver services to more than 4.3 million Nairobi residents.

This year's budget being the first for the Sakaja-led administration is Sh42.3 billion, comprising of Sh28.3 billion for recurrent and Sh14 billion for development expenditures.

Deputy Governor Muchiri Njoroge asked residents to hold the county government accountable if they don't get the necessary services.

“This is the highest budget ever we passed this year and it is meant to fund the county to provide services to the residents. It is good to hold us to account in the manifesto we promised during campaigns,” he said.

Sakaja urged Nairobi residents to pay their taxes warning that the enforcement will be intensified to ensure everyone is compliant.

“It would be terribly unfair for Nairobi residents to evade taxes and enjoy services which his neighbours are paying for. We can't have others enjoy free rides while others are paying taxes,” he said.

County assembly speaker Ken Ng’ondi said all 123 MCAs voted for the Finance Bill and was passed with no opposition.