Sonko Slaps Nairobians With New Taxes in Ksh32.5B Budget
Tough economic times await Nairobians as they are set to dig deeper into their pockets to help finance Nairobi Governor Mike Sonko's annual budget of Ksh32.5 billion.
The residents and property owners are set to pay more in land rates, parking fees and garbage collection levy in a raft of new charges intended to finance the budget.
Nairobi Finance and Economic Planning Executive Charles Kerich, in his budget on Tuesday, announced new taxes and levies that if approved by the county, will see Nairobians pay more.
However, disclosure of the extent of the additional tax to be shouldered by Nairobians will be revealed in the county's finance bill, as Business Daily reports.
The demand for services by far outmatches the ability of the county to deliver, partly because the majority of the population enjoy the services without contributing any amount as fees or charges,” stated Kerich while reading budget estimates for the 2019/2020 financial year.
Those who will be majorly affected are motorists whose parking fees are set to shoot from the current Ksh200 in less than a week.
As from next year, property owners will also pay increased charges, based on the new valuation of real estate across different parts of the city.
As for hotel owners, every bed facility will be paid for. The new levy set to be known as city bed-occupancy levy will see City Hall carry out a census to determine the number of beds in hotels across the county.
"To improve service delivery, I shall be proposing to amend the relevant laws to introduce a city bed-occupancy levy. We have our proposal, but we will have to meet with the MCAs to agree on a charge," highlighted Kerich.
To match services offered in managing solid waste, businesses, households, and schools will also pay new charges.
Online business owners operating in the city will further be incorporated into the county’s tax bracket.
Gambling and entertainment establishments will also pay a new charge starting July 1. The county currently only collects revenue from pool tables and premises. The new levies are intended to raise Ksh17.32B in internal revenue for the capital.
Reports by the publication state that the county collected slightly over Ksh10B in internal revenue in the 2018/2019 financial year, missing its Ksh15B target.
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