Nairobi residents spared new higher fees

Nairobi residents will be spared an increase in fees and levies after the county government failed to pass a law providing for the charges.

The County Assembly is yet to pass the Finance Bill that was introduced on October 5 despite the proposed law having an October 10 deadline.

The Public Finance Management (PFM) Act gives a three month timeline after passing of the Appropriation Act within which the Finance Bill must be passed.

“Not later than 90 days after passing the Appropriation Bill, the County Assembly shall consider and approve the Finance Bill with or without amendments,” the PFM Act says.

The Nairobi City County Appropriations Act, which authorised the county to spend Sh36 billion, was signed by Governor Evans Kidero on July 10 — which means the Finance Bill must have been debated and approved by October 10 in line with the 90-day deadline.

This means that City Hall will continue to charge fees and levies contained in the earlier Finance Act, denying Nairobi an opportunity to raise addition revenues as it struggles to revamp infrastructure and settle bills.

County Attorney Gad Awuonda, however, said that the Bill is within the law as it was submitted to the Assembly within the 90-day period.

The county has previously said that provisions of the Public Finance Management Act on timelines for a new Finance Act are just guidelines and not binding.

The Finance Bill, which is before the Budget and Appropriations Committee, is seeking to increase clamping charges from the current flat rate of Sh2,000 to a graduated scale where large vehicles of over 10 tonnes would pay Sh6,000.

The Bill is also seeking to introduce towing charges for various vehicle classes based on where they are towed from.

A vehicle that is below two tonnes, for example, and would cost Sh4,000 to be towed from Westlands.

Also targeted is the food handlers’ health certificate whose cost the Bill raises from Sh1,000 to Sh1,500. The Bill is also seeking to regularise parking fee discounts given to public transport operators in 2014.

The county in 2014 slashed parking charges for matatus by up to 28 per cent under the Tax Waivers Administration Act but was never reflected in the Finance Act.

The current Finance Bill seeks to make these reduced charges part of the Finance law.

The changes that the Bill seeks to increase are however minimal compared to the Finance Bill 2015 which was never passed.

Nairobi has not increased charges since 2013 with wrangles between the County Assembly and the Executive derailing passing of the law in the last two financial years. The county continues to use the Finance Act 2013.