Kenya: City Hall Plans to Raise Parking Fees to Sh400

Nairobi motorists will pay different parking rates depending on the location if Members of the County Assembly adopt the Executive's new proposal to raise revenue.

If endorsed, motorists parking in the central business district (CBD) will now pay Sh400 daily up from the current Sh200 charge.

Those accessing the same service at business hubs such as Karen, Gigiri, Industrial Area, Hurlingham, Westlands, Parklands, Upper Hill, Community and Yaya Centre will part with Sh300.

Parking in other areas will continue attracting the current Sh200 daily fee.

The development means that the county government is going back to last year's proposal, which had recommended that the fee be increased to Sh400. The plan was however shot down by MCAs who capped it at Sh200.

REVENUE COLLECTION

Nairobi County Finance and Economic Planning Executive Mr Charles Kerich said the new charges are part of a raft of measures that the county government plans to adopt to address dismal revenue performance in the last financial year.

He said that the proposals are contained in the draft Finance Bill, 2019 which is now before the County Assembly's Finance, Budget and Appropriations committee.

"The new parking proposals are what the county thinks can increase its revenue collection in the parking stream this financial year. We want to ensure that our revenue targets for this new financial year are achieved," said Mr Kerich.

He said the reduction last year from Sh300 to Sh200 had resulted in significant reduction of revenue as well an increased traffic congestion in the city centre.

"The reduction in fees for on street parking was the cornerstone of amendments in the last financial year but saw drastic reduction in revenue collections and also brought about congestion within the city centre," he said.

TARGETS

City Hall collected an estimated Sh10 billion in the 2018/2019 financial year that ended in June against a target of Sh15 billion.

Parking fees are among the counties top revenue earners, with City Hall collecting nearly Sh2 billion every year. It targets to collect Sh2.97 billion from this revenue stream.

Failure to meet the target has been blamed on corruption with parking attendants and motorists accused of colluding.

According to a 2016/2017 Auditor-General's report, City Hall loses Sh300 million every year in parking fees because of weak enforcement and collusion between corrupt officials and motorists.

For a long time motorists would pay Sh140 for parking in Nairobi. The fee was revised during the administration of governor Evans Kidero in 2013 to Sh300.

LEVIES

The Budget committee chairman Mr Robert Mbatia said his team has already began debate on the bill which stipulates fees and levies payable to the county government by businesspeople and residents seeking services for the next one year.

"We will be meeting the County Treasury to explain their proposal further. After this we shall now go back to the people through public participations. Thereafter, we will table the Bill in the House for approval or rejection," said the Kariobangi South MCA Robert Mbatia.

See What Everyone is Watching

More From: Nation

Don't Miss

AllAfrica publishes around 600 reports a day from more than 150 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.