City Hall more than doubles Nairobi CBD parking fees

The City Council of Nairobi has more than doubled parking fees for cars entering the central business district, setting the stage for a general rise in the fraction of incomes that residents will spend on transportation.

City Hall also announced wide-ranging adjustments in rents for residential property in specific estates.

The new parking charges, which are set to come into force on November 1, will see private motorists pay Sh300 per day to park in the CBD from Sh140 – a more than 100 per cent increment.

City Hall said the decision to increase rates and service charges aims at raising the money it needs to check its growing debt and offer residents better services.

City Hall said rents for residential houses located in specified areas of Nairobi will rise by at least Sh2,000 a month.

Revenues from the new charges, which take effect on Monday, have been factored in the council’s budget for the current financial year, which stands at Sh12 billion shillings, up from Sh9 billion in 2009.

The council’s financial plans were last month thrown into a spin after the Kenya Local Government Workers Union won an industrial dispute against local authorities countrywide in what raised City Halls’ wage bill to Sh530 million per month from about Sh480 million.

The rise in parking fees could not have come at a worse time for motorists as they grapple with high pump prices, which have seen a litre of petrol edge towards the Sh100 mark a litre over the last one month.

Business people have opposed the rise in service charges, arguing it is likely to eat on their profits.

“This is unacceptable and is set to push matatu businesses out of profitability while delivery of services remains deplorable,” said Simon Kimutai, National chairman of the matatu owners association. “We will protest against this otherwise it is the commuter who will bear the additional cost,” said Mr Kimutai.

In automated parking bays in the CBD, motorists will have to part with a Sh50 entry fee and then Sh15 for every additional 30 minutes spent there.

Motorists, leaving their cars in non-automated parking lots, will pay Sh400 up from Sh200.

Motorbike owners will pay Sh50 a day while lorries will be charged Sh1,000 up from Sh800.

Motorists parking in areas outside the CBD such as Upper Hill, Buru Buru Shopping Centre and Pangani will pay Sh200 a day for saloon cars, Sh500 for lorries while trailers will be charged Sh2,000.

The adjustments also affect seasonal parking tickets, which will rise from Sh2,000 to Sh3,000 for private cars a month, Sh2,000 to Sh3500 for taxis and Sh2,200 to Sh4,000 for 14-seater matatus.

The new rates are contained in a special gazette notice no. 12582, dated October 15, 2010 published by Deputy Prime Minister and Minister for Local Government Musalia Mudavadi.

“It is important to note that the cost of construction materials has gone up by 30 per cent in the last one year, making it more expensive for the council to put up roads and other physical infrastructure,” said City Hall in a statement. “Therefore, the hiking of the fees is a response to the economic factors in play globally and locally. Similarly, the increase is in tandem with the inflation rate of 3.9 per cent.”

This comes at a time when City Hall is sprucing up its financial muscle and lining up its balance sheet as it plans to raise a Sh100 billion infrastructure bond to fund key projects, which it hopes will boost service delivery and expand opportunities in the securities market.

Analysts said the financing will help ease the strain on the council’s revenues, which can hardly meet the infrastructure needs, giving it a chance to meet its payroll needs and reduce the financial pain of Nairobi residents.

City Hall has also raised rents for its houses by between Sh1,500 and 2,000 in areas such as Buru Buru and Ngara.

Traders in City Hall owned shops and stalls will have their monthly charges raised by between Sh500 to Sh3,000.

The rules come as the government prepares to implement major guidelines expected to improve traffic flow in Nairobi.

The measures include installation of synchronised traffic lights, better traffic flow at junctions and roundabouts and non-parking measures and rules on the use of main traffic arteries.

Other highlights include improving walkways for pedestrians and the establishment of public car parks outside the city centre to encourage motorists to park and use public transport to the CBD.

Traffic congestion is estimated to cost Sh2 billion a day in fuel consumption and lost man-hours, making it a key concern for city planners and managers of the Vision 2030 development blueprint.