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Nairobians to pay higher taxes as Sakaja assents to Finance Bill
Nairobi Governor Johnson Sakaja speaking at Uhuru Park in Nairobi on September 11, 2023 during the County El Nino preparedness Management briefing.
What you need to know:
- Motorists are headed for high parking fees following the introduction of new parking zones. Parking fees will be based on the zones.
- Residents seeking to use Kamukunji and Jacaranda grounds will not be required to part with any money.
Governor Johnson Sakaja has defended the Nairobi City County Finance Act, 2023, which imposes new taxes on residents and traders to raise an extra Sh17 billion.
The law — signed on Friday by the governor — seeks to raise Sh42.3 billion in the 2023/24 financial year. Last year, the county collected Sh25 billion.
Among those hardest hit by the new law are market traders, as levies for stalls have been increased by 10 per cent. Also affected are residents living in county houses after the new law increased their rentals by 10 per cent.
Club owners also have nothing to smile about following the raising of tax on alcoholic drinks and licensing, a move the governor said is to help control the number of drinking outlets.
Advertisers’ pockets have also been raided, with the law increasing application fees for outdoor advertisement and signage.
Motorists are headed for high parking fees following the introduction of new parking zones. Parking fees will be based on the zones. Zone I include the CBD, Kijabe Street, Westlands, Upperhill, Community, Ngara, Highridge, Industrial Area, Gigiri, Kilimani, Yaya Centre, Milimani, Hurligham, Lavington, Karen, Eastleigh, Muthaiga, Gikomba and Nairobi West.
Zone II includes on-street parking at commercial centres, and any county market parking that is not in Zone I. The daily parking fee for saloon cars has increased from Sh200 to Sh300, for vans/pickups from Sh200 to Sh500, lorry/minibus weighing up to five tonnes from Sh1,000 to Sh2,000, and lorries above five tonnes from Sh1,000 to Sh3,000.
The law has also introduced new charges for registration of taxis and boda bodas.
However, charges for market services remain unchanged, while charges for Alternative Provision of Basic Education and Training have been reduced from Sh10,000 to Sh3,000 annually.
Impounding charges have been retained in some areas and reduced in others in what the county boss said is meant to drive compliance.
Residents seeking to use Kamukunji and Jacaranda grounds will not be required to part with any money.
Of the Sh42 billion the Finance Act seeks to collect, Sh28.3 billion is earmarked for recurrent expenditure and Sh14 billion for development expenditure.
The two grounds have been at the heart of opposition politics featuring prominently during the recent demonstrations called by Azimio to protest the high cost of living.
Sakaja is banking on the new Finance Act to collect revenue which he seeks to use to deliver services to the more than 4.3 million residents of Nairobi.
Of the Sh42 billion that the Finance Act seeks to collect, Sh28.3 billion is earmarked for recurrent and Sh14 billion for development expenditures.
Speaking after assenting the Finance bill, Governor Sakaja defended the new Finance Act terming it as the most comprehensive in five years.
He called on every Nairobian to embrace paying taxes saying his administration will be stepping up enforcement to ensure everyone is compliant.
“It would be terribly unfair for one Nairobian to evade taxes and enjoy the services which his neighbours are paying for. We can’t have some paying and others enjoying a free ride, said Sakaja.
He promised Nairobi that money collected will be utilised in a transparent manner for the benefit of all residents.
“We owe every shilling of that to the sweat of Nairobians. That is why I promise you that we will spend every shilling we collect under the provisions of this Finance Act as prudent as possible, and always for the benefit of this county and its people. That is my assurance to you,” he added.
The county boss revealed the county has so far in this financial year collected Sh 10.5 billion.He one reason why compliance in payment of levies and fees has lagged is due to lack of clarity about the various charges owed under the County’s rules.
To end this, Sakaja said his administration will publish a full schedule of all fees and charges owed by residents for clarity and honesty.
Deputy Governor Njoroge Muchiri said all contentious issues in the bill had been agreed upon amicably.
“This is the largest Finance Act to have ever been passed by the county assembly. The job now lies in execution and delivery of services,” said Mr Muchiri.
Nairobi County Assembly Speaker Ken Ng’ondi said the session to pass the Finance bill was marked by a 100 percent turnout of the members. The assembly has a total of 123 MCAs.
He commended the ongoing good working relationship between the county executive and county assembly adding it is to the benefit of residents.
County Assembly Majority Leader Peter Imwatok said the coming to effect of the Finance Act now paves way for the collection of levies by the county government to deliver services to the locals.
