Higher taxes for Nairobi as county seeks to bridge budget deficit

October 23, 2018 4:37 pm
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According to the Bill, day primary, nursery and day cares with over 850 students will be required to pay up to Sh30,000 per month for garbage collection/FILE

, NAIROBI, Kenya, Oct 23 – Nairobi residents are set to pay more taxes as the County Treasury introduces new levies and higher taxes in some sectors through the proposed Finance Bill in a bid to bridge the 2018/2019 budget deficit.

A new levy on garbage collection has been imposed on homes with those in informal settlements parting with Sh100 per month, Sh300 for middle case estates and Sh500 per month for high-end suburbs.

Schools have also not been spared.

According to the Bill, day primary, nursery and day cares with over 850 students will be required to pay up to Sh30,000 per month for garbage collection.

Boarding primary, secondary, universities and colleges with students above 2,000 will be required to pay up to Sh65,000.

The rates for parking fees for saloon cars have also been revised from Sh300 to Sh400 per day.

The County Treasury is also seeking to introduce new levies on ATM machines in the city, revise charges on billboards, gaming and lotteries.

The Chair of the County Assembly Budget and Appropriation Committee Robert Mbatia however said they will not allow Nairobi residents to be to be overtaxed in order to bridge the budget deficit.

“As a Committee our first role is to represent members of the public. We understand that Nairobi residents also need quality service delivery, but we have to balance to ensure they are not overtaxed,” said Mbatia.

His sentiments have been echoed by Embakasi MCA Michael Ogada who wants the County Government to optimize the already existing streams to raise revenue.

“You cannot bridge the deficit by overtaxing poor Kenyans. First of all you should tell us if the taxes we allowed you to collect you collected optimally, because when you look at some areas they have done like 50 per cent which means there is room to improve so their inefficiency should not be transferred to the public,” said Ogada.

Ogada further said it is county’s obligation to collect garbage and that they shouldn’t overburden Kenyans by paying for the service when they have already paid for the licenses.

Nairobi residents have until close of business on Friday to submit their views on taxation proposals outlined in the Nairobi County Finance Bill.

The Assembly’s Budget and Appropriation Committee will be holding public hearings to collect public submission on October 29 and October 30.

The residents can also post or drop their written memorandum to the office the County Clerk which is located at City Hall.

Copies of the Bill which was tabled on September 27 can be accessed on the Nairobi County Assembly website.

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