Traders, patients to pay more for services in new finance bill changes

Dan Gakunyo arranges fruits at his stall in Nyeri County. Traders will pay more for business licences if a new Bill sails through. [Kibata Kihu, Standard]

Traders in the county will pay steeper taxes if proposals contained in the County Finance Bill 2018 are adopted.

The Bill, which has already been taken through public participation, seeks to make traders who have more than one business under the same roof to pay licence fees for each of them.

This means, for instance, that a wines and spirits shop that also provides mobile money services will have to acquire licences for the two businesses.

Finance and Economic Planning Committee chairman Anatasio Wakabaire told residents the move would help the county government to collect more revenue.

Wines and spirits outlets will be charged Sh60,000 while, depending on the size of the mobile money shop, traders will pay between Sh9,000 and Sh18,000 per year. 

Large mobile money traders with more than six counters will be charged Sh18,000 in urban areas while outlets with between three and six counters will part with Sh12,000 annually. Small mobile money shops - with one or two counters - will be charged Sh9,000 per year.

Most business premises in the county have between two and three lines of business under one permit.

Informal traders using their vehicles as shops will be charged Sh20,000 per year while those selling wares from their car boots will pay Sh1,000.

Petrol stations

Petrol stations will pay between Sh25,000 and Sh15,000 per year to operate in the county while lodgings that charge between Sh500 and Sh1,000 per room will pay between Sh10,000 and Sh15,000 per year.

Homestay businesses will pay Sh2,000 per year while mobile restaurants will be charged Sh20,000.

Proposals to have the Health Services Department increase the cost of services such as ultra sound and CT scans, and minor procedures have stirred debate, with some people complaining that this will render healthcare unaffordable.

According to the proposals, the cost of chest x-rays will be raised from Sh300 to Sh500 while specialised ultrasounds (cranial and doppler) will go up from Sh1,500 to Sh3,000.

Outpatient services such as minor procedures under general anaesthesia have been increased to Sh5,000 from Sh1,500.

Major and intermediate procedures will be charged at Sh10,000 and Sh7,000 respectively, up from Sh8,000 and Sh5,000.

Michael Ndegwa, a member of Kenya Aids NGOs Consortium (Kanco), questioned the team about the proposals on health services.

“While we commend the county government for not charging any fees on blood transfusions, I have noticed an increase in some of the health services listed in the Finance Bill. What is the justification?” Mr Ndegwa asked.

Universal healthcare

Wakabaire explained that the decision was informed by the fact that Nyeri was a pilot county for the launch of universal healthcare. He said the fees would be paid by the National Health Insurance Fund (NHIF).

“These are corporate fees that will be charged to NHIF and not individuals. Residents on NHIF will not pay in cash for these services as they are covered."

But Ndegwa wondered what would happen to those whose cover surpassed the capitation limit provided for by the insurance.

“Those who pay Sh500 per month have a limit capitation of Sh2,600 per day. If you increase the prices of basic procedures, most patients will have to pay in cash as they will have surpassed their limits,” he said.