5 July 2012

Kenya: Kakamega Council Increases PSV Fees

KAKAMEGA Municipal Council has increased the fees levied on all Public Service Vehicles (PSV) entering the town. The fees have bee increased by 25 to 42 per cent in order to enhance the councils revenue. The municpal council is facing a Sh23 million deficit on its budget that was unveiled last Thursday.

The new charges were announced during a meeting between the town's Mayor Matias Sichere, town clerk Newton Mukabue and matatu operators on Tuesday. All 14-seater matatus will now pay Sh100 for every entry they make into the town while mini buses will pay Sh130. Prior to the changes, 14-seaters used to pay Sh70 while the mini-buses paid Sh100. Buses will be charged Sh200 per entry up from Sh150.

The two parties agreed to form a joint committee to explore ways of ending revenue loses by both the council and the matatu operators. The 14 member-committee will be composed of seven representatives from both the council and the matatu operators. Mukabue, the town clerk, will be its chair. The committee was mandated to explore ways of introducing monthly stickers to replace the daily tickets issued to the PSVs at toll stations by council workers. "This is informed by the thinking that once we have the stickers, operators will only be buying it once in a period that will have been agreed upon to avoid field council staff, drivers and their conductors handling the cash," said Sichere.

The council also plans to finance the budget deficit through raising Sh15million from property rates, Sh4million from the bus stage, Sh3million from business permits and Sh4million from fees charged on market traders. to finance the budget shortfall. The committee is required to present its report to the council in a month's time. Participants at yesterday's meeting reached a collusion to curb corrupt practises by the council staff and matatu operators. They said such practices deprives the council millions of shillings. The new rates are to be effected immidiately.

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