Home GENERAL NEWS City Hall targets motorists, hoteliers with new levies in KSh 35 billion county budget ▷ Kenya News

City Hall targets motorists, hoteliers with new levies in KSh 35 billion county budget ▷ Kenya News

by biasharadigest

– Nairobi Finance and Economic Planning Executive Charles Kerich proposed a number of measures to help City Hall raise funds for the budget

– Those likely to be affected by the proposed new tax measures include city motorists, property owners and hoteliers

– In terms of budget allocations, health sector was the biggest beneficiary having received KSh 7.4 billion followed by the transport sector with KSh 3.64 billion

Nairobi governor Mike Mbuvi Sonko has tabled a KSh 35.2 billion county budget estimate for the 2019-2020 financial year (FY) which is now awaiting approval by the County Assembly.

The budget statement was read by Nairobi finance boss Charles Kerich who highlighted a raft of proposed new tax measures aimed at raising money to finance the spending plan.

READ ALSO: Henry Rotich’s new headache as he prepares to table another KSh 3 trillion budget

Tough times ahead for Nairobian taxpayers as Sonko unveils KSh 35 billion county budget

Nairobi Finance and Economic Planning Executive Charles Kerich tabled the county budget estimates on Tuesday, June 25. Photo: Nairobi News.
Source: UGC

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In his budget speech, Kerich proposed to raise parking fee for motorists driving in and out of the capital from the current KSh 200 effective July 1, 2019.

He also proposed to revise upwards charges for Nairobi property owners upon conducting a new valuation.

The county finance boss disclosed the new valuation roll was ready for implementation he suggested should commence in July 2019 subject to approval by the county assembly.

“The valuation roll was last updated 39 years ago, in 1980. The new valuation roll is ready and we intend to start implementing it from July 1 2019. The new rates will be applicable from January 1 2020,” he said.

READ ALSO: Auditor general on the spot after outrageous Kiambu county budget allocations

Not to be spared are hotel owners who Kerich proposed to slap with new charges as per the bed capacity available in each of the city facilities.

The city bed-occupancy levy, as he referred to it, would be introduced once the county conducts a census to establish the number of beds in every hotel operating within Nairobi.

Kerich is equally targeting schools, other business sectors with new levies arguing the demand for services in Nairobi had so far surpassed the ability of the county government to deliver.

“This is partly because majority of the county’s population enjoy the services without contributing any amount as fees or charges,” he said.

READ ALSO: Nairobi county education CEC Lucia Mulwa roughed up by MCAs over delayed bursaries

In terms of allocation, the county’s health sector would be the biggest beneficiary having been allocated KSh 7.4 billion followed by the transport sector with KSh 3.64 billion.

The county assembly was allocated KSh 3.2 billion; energy, water and environment received KSh 2.7 billion.

Education received KSh 2.1 billion, safety and security KSh 2.2 billion, urban planning sector KSh 688 million and agriculture KSh 126 million.

“The focus in the coming financial year will be to consolidate the gains, confront the challenges with vigour and determination while ensuring there is prudent use of the resources we have been entrusted with,” Kerich said.

Nairobi county had collected about KSsh 10 billion in the 2018-2019 FY and is targeting KSh 17.32 billion internal revenue.

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