City Hall, roads agency at war over lucrative outdoor adverts

The battle for control of the multi-million shilling outdoor advertisement industry has intensified in Nairobi as the county government warns the highways agency to keep off its turf.

Governor Evans Kidero has written to Kenya National Highways Authority (KeNHA) officials asking them to keep off advertising-related activities “because the Constitution as expressly given this mandate to the county government.”

In the letter dated July 25 and addressed to KeNHA director-general Meshack Kidenda, City Hall has accused the roads agency of approving and levying outdoor advertisements in contravention of the division of roles as set by the law.

“In order to avoid this potential conflict and competition, Schedule Four of the Constitution sets out the distribution of functions between the national government and county governments.

“In this regard, I would wish to bring to your attention Part 2 (3) of the Fourth Schedule where outdoor advertising is a function of the county governments,” Mr Kidero says.

The renewed turf wars could suck advertisers into a conflict that has been running since last year over which is the correct registering entity.

“It is also our understanding that there is no legislative lacuna on outdoor advertisement. So, any duplication of the role can only be interpreted as conflict, confusion and unnecessary burden to investors in the outdoor advertisement industry,” Mr Kidero added.

The conflict could potentially hurt City Hall’s revenues, with outdoor advertising expected to net the county about Sh1 billion in the current financial year.

READ: Agency’s billboard fees plan sets stage for row with counties

The roads agency is responsible for class A roads in the county which include Mombasa Road proceeding to Waiyaki Way and Thika Road.

In the Kenya Roads Regulations 2013, KeNHA has set a Sh5,000 per square metre fee payable on grant of approval to place commercial advertisements or billboards on road reserves or adjacent areas.

The Outdoor Advertising Association has since moved to court over the issue, contesting the law that would see its members pay fees to both KeNHA and City Hall.

KeNHA has since last year been seeking to enact the regulations which will see it receive annual fees from billboards, while counties will get a one-off charge for licensing the erection of advertising posters on road reserves.

Mr Kidero’s letter could be the first salvo by counties that rake in billions from advertising.