Traders face more costs in new City Hall licensing fees

Traders in Nairobi will pay higher licensing fees beginning Tuesday as the county government looks to collect up to Sh1 billion in monthly revenue, raising the cost of services to residents.

In a Gazette notice on Thursday, county finance executive Gregory Mwakanongo said all provisions of the Finance Act assented to by governor Evans Kidero last month would take effect on October 1 except those affecting land rates, housing and transport.

“We usually collect about Sh500 million monthly. In October, we are anticipating a rise in revenues although I can’t give you a figure right now,” Mr Mwakanongo said on Friday.

He said that the county government had already lost revenues for three months of the current financial year and implementation of the new charges would enable City Hall honour its financial obligations.

This will see businesses across most sectors pay enhanced charges for operating licences and other fees and taxes with some rising by more than 100 per cent.

(READ: Life gets tougher in Nairobi as City Hall raises charges)

Residents will see higher food prices with the cess charged per unit of foodstuffs entering markets set to rise. For example, it will cost a trader Sh100 up from Sh70 to bring in an extended bag of cabbages into the city’s markets.

The fee for a large fish basket will rise from Sh300 to Sh400. This is in addition to extra charges for renting a market stall.

Large supermarkets that occupy over 5001 square metres for example will have to part with Sh100,000 for a licence from the previous Sh60,000. Smaller traders will also feel the pinch with a licence for a small eating house rising sharply from Sh7,000 to Sh15,000.

Other businesses that will be affected include advertisers with charges for billboards, signboards, street pole, adverts in public service vehicles all set to rise.

Developers seeking approval for building plans and permits; patients seeking treatment at county-run hospitals and those using county solid waste management services will also be charged more.

Next on the line will be car park fees which are scheduled for increase of more than 100 per cent from November followed by tenants in council houses who will pay more from January next year. Land rates would also be increased then.

The staggered commencement dates are a departure from an agreement reached between Dr Kidero and Consumer Federation of Kenya (Cofek) which had set next month as the effective date for the higher charges.

Cofek said in a statement that this was to “allow time for city consumers to understand the said law, its implications as well as allow the City County to print security-proof revenue receipts.”

“The agreement with Cofek was on the parking fees only and this has been maintained with its commencement still on November 1,” he added.

On Friday, however, Cofek secretary- general Stephen Mutoro said he supported the staggering because it would allow for smoother implementation.

Among the pressing county obligations is the implementation of a workers’ comprehensive bargaining agreement (CBA) from this month as agreed with the Kenya County Government Workers Union earlier to end a debilitating strike.

The Finance Bill which was signed into law on September 4 was to set to commence on September 18 but was postponed after the Cofek deal. It is expected to raise the county’s revenues to nearly Sh1 billion per month once fully implemented.

This will help in dealing with the rising wage bill that is set to cost the county government about Sh10 billion annually as well as settling Sh44 billion in debts that were inherited from the defunct City Council of Nairobi.

Mr Mwakanongo also set October 1 as the commencement date for the county’s Tax Waivers Administration Act.

The law gives the executive member for finance with the concurrence of the Governor, discretion in waiving payment of any taxes, fees or other dues to the county government.