City Hall targets supermarkets, private parking and gambling dens to finance its Sh32b budget

Nairobi County acting finance executive Charles Kerich before he presented the Sh32 billion budget before the county assembly on Tuesday. [Josphat Thiong'o, Standard]

A plan to raise taxes on goods and services will see city residents pay more to finance the 2018/19 budget.

Residents will now be forced to pay for disposal of waste as the county government seeks to finance its Sh32 billion budget.

There will also be a charge for parking in private properties as well as a fee for supermarkets that charge shoppers for their carrier bags.

Property owners were also slapped with higher land rates with a valuation of properties expected to be carried out soon. Acting county finance executive Charles Kerich outlined the new taxation measures in the county assembly when he read the budget on Tuesday.

Of the total budget, the county administration hopes to raise at least Sh15 billion from local revenue sources.

“I will be reviewing the fees and charges for a number of revenue streams with a view for ensuring there is efficient collection to finance our operations,” Kerich said.

He noted that the last time a review of land rates was done was in 1982. An increase on rates was in order to ‘bring the rates charged to realistic market values’.

“It is unfair that shoppers pay for bags even after spending heftily. We’ll introduce a fee so that when shoppers spend money, the supermarket provides them with  carrier bags,” said Kerich.

Supermarkets, hospitals and shopping malls were accused of being unscrupulous by charging their clients for parking and will now be required to pay a fee for it. They will need to apply for a licence as the parking will now be treated as a different business venture.

“I will be proposing a fee private parking spaces that charge their customers hourly parking rates,” said Kerich.

Households and businesses will pay a fee to help keep the environment clean.

City Hall is also looking to get a piece of the gambling pie as it imposed a fee on casinos. It argues that it has not been receiving its share of the proceeds from gambling despite it being a devolved function.

Outdoor advertising and signage, which is a main revenue stream for the county, will also see a revision of the rates upwards.

But itinerant traders have a reason to smile after Sh25 charge on mama mbogas in the estates was abolished.

This is expected to transfer Sh3 billion annually in direct benefits to households.

“This reprieve will not affect traders in designated market and discernible commercial areas, who will be required to pay the fee.”

The county government has traditionally failed to meet its revenue targets and the new taxes are expected to help cure the problem.

Budget and Appropriations Committee chairman Robert Mbatia said City Hall only collected Sh8.5 billion against a target Sh17 billion 2017/18 financial year.

The national government is expected to contribute Sh16 billion.