Motorists, businesses to bear biggest burden of Sh36bn City Hall budget
A Nairobi County attendant collects parking fee from a motorist in the city centre. PHOTO | FILE
What you need to know:
Car owners will be expected to pump in Sh3.5 billion in parking fees and business people will chip in with Sh3.6 billion.
Motorists, property owners and businesses will shoulder the biggest proportion of Nairobi County’s Sh36 billion budget for the year beginning July.
The county budget estimates indicate that the county expects to collect Sh12.6 billion from land rates, parking fees and single business permits, up from Sh9 billion this year.
This amount expected from the three revenue streams is 64.6 per cent of the Sh19.5 billion City Hall expects to collect internally in the year.
The county did not indicate if it would raise fees charged or intensify revenue collection on the current rates. The county government has not revised its rates since 2013 when it came into office.
City Hall has also announced it would automate all payments beginning July as it moves to seal revenue losses associated with cash handling by employees.
The pressure on motorists, property and businesses owners to fund the city government’s budget comes against the background of complaints that they do not receive commensurate services.
Earlier this year, Eastleigh business owners threatened to boycott paying fees and charges to the city over dilapidated roads and uncollected garbage.
Land rates, the biggest revenue earner, is expected to net Sh5.5 billion. City Hall has intensified clamping of non-compliant properties including parastatals in recent months.
Car owners will be expected to pump in Sh3.5 billion in parking fees and business people will chip in with Sh3.6 billion.
The county overall budget is valued at Sh35.9 billion financed through Sh19.5 billion internal revenues, Sh14.2 billion from the Treasury and Sh1.4 billion from the World Bank.
Of this amount, the Sh23.1 billion will be spent on recurrent expenses and Sh12.8 billion on development.
The county assembly will receive Sh1.7 billion to run its activities with the public works and infrastructure which is responsible for roads, street lighting and drainage among others receiving Sh6.2 billion.
This will be the last budget to be administered fully by the Evans Kidero-led county government before next year’s polls.
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