Motorists in Nairobi will start paying more for parking with effect from next month.
Finance CEC Charles Kerich said the reduction of parking fees from Sh300 to Sh200 by Governor Mike Sonko has drastically reduced revenue collections.
Besides, Kerich said, the move has increased congestion within the Central Business District.
“To solve the two problems, and to test the elasticity of demand for parking services, I propose a review of parking fees from July 1, “ said Kerich when reading the county’s 2019/20 budget that has hit Sh35.2 billion.
The exact parking fee amounts shall, however, be contained in the Finance Bill scheduled to be tabled in the County Assembly this week.
In order to expand the county’s revenue bracket, Kerich also proposed for amendments to the Betting and Lotteries Act, to enable it tax firms and individuals involved in betting.
Kerich told the House that the new valuation is almost ready, noting that the last valuation roll of the county property was last updated in 1980. He expressed optimism that with its implementation expected to kick off on January 1, 2020, the county would record higher revenue flows.
Revenue streams
Kerich called on MCAs to support the restructuring of the Nairobi City County Administration Bill 2019, which will ensure that all revenue streams are domiciled in the County Treasury, to facilitate revenue collection,
He said the county will restrict issuance of waivers that can injure revenue targets. “Any waivers issued shall be done in strict compliance with the Public Finance Management Act 2012 and the Nairobi City County Tax Waivers Administration Act 2013,” said Kerich.
The county collected Sh10.1 billion in the 2017/18 financial year with the amount expected to be slightly higher for the 2018/19 year.
