In a clear signal that parking fees in Nairobi could go up again, the County Government’s budget estimates lists motorists among the new sources of increased revenue in the next financial year.
The county expects to collect Ksh12.6 billion from land rates, parking fees and single business permits, up from Ksh9 billion this year, according to a report in the Business Daily. Motorists, property owners and businesses will shoulder the biggest proportion of Nairobi County’s Ksh36 billion budget for the year beginning July.
This amount expected from the three revenue streams is 64.6 per cent of the Ksh19.5 billion City Hall expects to collect internally in the year.
Given that it has automated most payments very little can be squeezed from current streams without a rate increase. The county government, led by Governor Evans Kidero, more than doubled parking fees from Ksh140 to Ksh300 per day in 2014 and increased business permits by over 50% after it took over in 2013.
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City Hall has also announced it would automate all payments beginning July as it moves to seal revenue losses associated with cash handling by employees. The pressure on motorists, property and businesses owners to fund the city government’s budget comes against the background of complaints that they do not receive commensurate services.
Earlier this year, Eastleigh business owners threatened to boycott paying fees and charges to the city over dilapidated roads and uncollected garbage. Land rates, the biggest revenue earner, is expected to net Ksh5.5 billion. City Hall has intensified clamping of non-compliant properties including parastatals in recent months.
Car owners will be expected to pump in Ksh3.5 billion in parking fees and business people will chip in with Ksh3.6 billion. The county’s overall budget is valued at Ksh35.9 billion financed through Ksh19.5 billion internal revenues, Ksh14.2 billion from the Treasury and Sh1.4 billion from the World Bank.
This will be the last budget to be administered fully by the Evans Kidero-led county government before next year’s polls.
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