Cabinet Secretaries could soon lose their unilateral powers to increase fees and levies charged for various government services.
This follows a proposal by the National Assembly Committee on Budget. As proposed in the report on the first Supplementary Estimates for the 2024/2025 financial year, CSs must seek Parliament's approval before adjusting such fees.
The Committee led by Kiharu MP Ndindi Nyoro explained that there was a need to develop a framework to guide the charging of fees and levies.
Consequently, the National Treasury was tasked with undertaking the policy on the same.
"The committee recommends policy measures for containment of the proliferation of non-tax levies, fees, and charges, including the requirement for approval by the National Assembly in variation of those levies, fees, and charges.
"By December 31, 2024, the National Treasury should submit to the National Assembly legal instruments and mechanisms for transmitting excess Appropriation-in-Aid (AIA) collection to the exchequer for reallocation to needy areas or for reducing the fiscal deficit," read the report in part.
The adjustment of levies and fees has been witnessed in recent years.
For instance, in the latter months of 2023, former Interior CS Kithure Kindiki raised charges for various government services such as replacing lost IDs.
Following the gazettement of the new charges, Kenyans have to pay Ksh1,000 to have their lost ID replaced.
Similarly, in January 2024, former Transport Cabinet Secretary Kipchumba Murkomen gazetted increased charges for Nairobi Expressway toll fees.
According to Murkomen who acknowledged the uproar from Kenyans, the increase was necessary given the changes in the economy such as the fluctuations of the exchange rate.
“The adjustment was done based on the Project Agreement taking into account the depreciation of the Kenya Shilling to the United States dollar since the time of gazettement of the Toll Rates in April 2022.
"The formulae for computing the new rates are already embedded in the agreement taking into account the loan facility by the investor which was borrowed using USD,” the former CS stated then.
