New charges to push up cost of business in Kajiado towns

Businesses owners and other residents of towns in Kajiado district will have to contend with a raft of new charges that are expected to raise the cost of doing business, increase rental charges and the price of land.

Kitengela, Ongata Rongai, Kiserian and Isinya, which are some of the fastest growing towns by virtue of their proximity to Nairobi, are within the Olkejuado County Council and will be affected by the new charges.

The local authority plans to introduce a raft of charges such as value rates in a bid to raise the revenue kitty for better service delivery.

However, the new charges are likely to raise the cost of doing business and living, bringing to the fore challenges facing the business community and residents of these areas in the face of a soft economy that is yet to pick up.

“The new charges will be borne by businesses and residents as property owners are likely to adjust their monthly rental charges to cover the increased cost,” said Isabella Njeri Wachira, a lecturer at the University of Nairobi’s Building Economics and Management department.

“We are introducing the charges to increase our revenue sources in order to improve service delivery such as maintaining a cleaner environment and feeder roads within our jurisdiction,” said council clerk, Fredrick Ndede.

Some of the charges to be introduced are enforcement of land rates for commercial, residential and industrial plots.

The law, to be charged at two per cent, has been in abeyance since it was passed in 2006.

Ms Wachira said the charge is levied on the value of property, adding that the council may send its valuers to assess property value.

Olkejuado County Council has already published the valuation roll.

Other new charges to be introduced will include parking charges, agricultural cess, open market charges, livestock trade charges and building and development charges.

Price rise

The charges, especially the livestock trade charge, are likely to lead to a rise in prices of beef as Kajiado district is the main supply to Nairobi.

For potential home owners, the price of land will edge upward as areas such as Ongata Rongai, Kitengela, Ngong and Isinya have been experiencing a huge influx of settlement due to affordability of land and proximity to Nairobi.

On the other hand, rental charges are expected to go up.

For instance, a two-bedroom house in Rongai, Ngong and Kitengela goes for Sh12,000 and Sh10,000 respectively.

Similar units say in Buru Buru, South C and Kileleshwa charge Sh20,000, Sh22,000 and Sh30,000 respectively.