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November 19, 2018

Parking fees to fall from Sh300 to Sh200 to increase revenue

Nairobi county ticketing officers clamp a parked car outside Simmers Restaurant on December 28 last year /COLLINS KWEYU
Nairobi county ticketing officers clamp a parked car outside Simmers Restaurant on December 28 last year /COLLINS KWEYU

City Hall will reduce daily downtown parking fees to Sh200 from Sh300 to attract motorists who have been avoiding public parking.

The reduction aims to increase revenue collection and improve services. The county loses millions of shillings in revenue yearly as many motorists prefer cheaper private parking. Some residents leave cars at home and take matatus.

The date will be announced.

In 2013, Governor Evans Kidero increased parking fees from Sh140 to Sh300. This enraged drivers. Governor Mike Sonko had pledged during campaigns to restore it to Sh140. 

City Hall also intends to increase the number of parking slots from 12,000 to 20,000. It aims to collect least Sh3 billion annually.

These measures are contained in the Treasury’s 2018-19 County Fiscal Strategy Paper to improve revenue collection, which has been declining since 2013.

“For the county to increase revenue collection from parking fees, enforcement capability, supervision and capacity need to be developed,” the document says.

 effective enforcement

The CFSP will guide the Finance department and county assembly through budget making and preparation of the Finance Bill.

It calls for enactment of the County Parking Act to achieve proper enforcement, clean up the parking database, upgrade records, deploy technology for surveillance and decentralise parking services.

Payment of parking fees was automated in September 2014 after it emerged that the county was losing millions of shillings to corrupt officers colluding with motorists. They engaged JamboPay to automate the parking fee collection.

According to the CFSP, the county has not far from exhausted its revenue potential from parking. As at December 31 last year, the county had generated only Sh787 million against the annual target of Sh3.5 billion. In 2016-17, it generated Sh1.97 billion against the Sh3.54 billion target, representing only 55.8 per cent.

Some 10,399 of the city’s 12,000 parking slots are for daily parking (private motorists) and seasonal ticket holders (matatus). Loading zones are Sh1,601-1,145 for private drivers and 466 for members of the public. The Bus Station has 59 parking slots.

 exhausting potential

Budget committee chairman Robert Mbatia said the assembly will pass laws to enable the executive to seal loopholes and increase collections.

“We will help the executive in whichever way ensure we hit our revenue potential. That’s the only way Nairobians will see development,” he said.

The fiscal document says only 100 parking slots are allocated to county staff. More than 12,000 employees own vehicles, hence, most workers park in areas meant for the public, leading to revenue losses, it says.

The 124 MCAs and the county assembly staff have been allocated 150 parking spaces in the law courts parking areas.

The ward representatives have, however, been parking their vehicles along City Hall Way and Mama Ngina and General Kago streets, which are meant for the public. This leads to revenue losses.

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