Nairobi City County has banned taxi operators from occupying parking slots in the Central Business District (CDB).
The county said no parking slots will be reserved for the taxi operators.
The County Chief Administrator John Ntoiti said taxis have been occupying most of the parking spaces in the CBD causing congestion.
"Go to Mombasa and other major cities, taxis do not park the whole day in a designated area," said Mr Ntoiti.
City Hall on Thursday clamped a number of taxis parked in the city centre and towed some over non-payment of parking fees.
There are over 4,000 taxis in Nairobi and they are required to pay daily parking fees of Sh300 or Sh6000 monthly.
Mr Ntoiti said most of the operators have not paid parking fees since the beginning of the year, denying the county government revenue.
A taxi operator, who did not want to be named claimed they have been giving the county's parking attendants Sh100 daily.
"We pay them Sh100 every day but we are never given receipts," said the operator.
The County Finance Executive Gregory Mwakanongo said all Public Service Vehicles are required to pay monthly parking fees.
The crackdown targeted taxis parked on Kimathi , Kenyatta Avenue, Moi Avenue, Koinange and Muindi Mbingu streets.