Nairobi governor Johnson Sakaja reduced the originating and terminating charge (seasonal tickets) for Public Service Vehicles (PSVs) operating outside the Central Business District (CBD) by 50 per cent, in a move to incentivize matatus to operate outside the CBD.
While presenting 2023/2024 Sh40.2 billion budget before the County Assembly on Thursday, June 29, Nairobi County Government Finance CEC Charles Kerich said apart from reducing congestion in the CBD, the move will enhance compliance by the PSVs and potentially increase revenue collection by Sh500 million.
In the new changes, PSVs carrying between one passenger to thirteen will pay Sh1,825 monthly, Sh5,110 quarterly, Sh8,760 – bi-annually and Sh18,980 annually.
In the past financial year, PSVs within the designated picking and dropping zones were charged Sh3,650 monthly, Sh10,220 quarterly, Sh17,520 bi-annually, and Sh37,960 annually.
Kerich said the county expenditure would be financed by Sh20.7 billion from the national government and Sh19.9 billion from revenue generated by the county.
He also explained that the budget is broken down into two, Sh28.3 billion for recurrent expenditures and Sh14 billion for development expenditure.
Kerich highlighted how the county government would continue generating revenue citing, land rates and business permits.
He said that the county government will be changing its strategy in the collection of land rates where the number of ratable properties is expected to increase from the current 181,000 to approximately 241,000 properties.
Sakaja also plans to leverage Geographical Information System (GIS) technology as a way to introduce sectional property rates specifically aimed at individual houses within a block of apartments.
The county executive intimated that this initiative is expected to increase income from land rates by approximately Sh1billion.
On business permits, the Finance CEC told the Assembly that Sakaja intends to restructure the Single Business Permits codes by introducing new parameters, where permits will be issued based on the classification of businesses, which will be categorized into hyper, mega, large, medium, small, and mini.
“The new parameters will be charged as follows; Hyper – Supermarket at Sh40,000, Mega Supermarkets at Sh30,000, Large Butchery shop or retail service at Sh4,000, and Kiosk at Sh1,000, all shops and retail services in Nairobi City County owned Markets at Sh2,000.” Kerich stated, adding that the move would enhance fairness and compliance and encourage more businessmen, especially small traders who had previously defaulted to comply.
Additionally, Kerich said the Sakaja administration will review charges for fire inspections and certificates, taking into account the sizes and activities of businesses to enhance compliance levels, observing that the old charges were too high which led to many clients to seek the same services from neighbouring counties that are charging lower fees.
Further, the county government will reduce the charges for annual licenses and permits for water bowsers and exhausters to enhance compliance.
“The old charges are too high resulting in non-compliance by many operators. This will also enhance the safety of the water and ensure a clean environment.” Kerich said.
Another reduction will be in the charges for complementary education institutions in informal settlements to as low as Sh3,000 for small centres with less than 200 pupils, amount which will be payable in instalments in line with the Nairobi City County Trade Licensing Act, 2019, to recognize and encourage the services given to vulnerable people in society.