Parking fees to rise to Sh300 as City Hall Treasury sets Sh17bn revenue target

KERICH NAIROBI BUDGET - Parking fees to rise to Sh300 as City Hall Treasury sets Sh17bn revenue target
City Hall only collected Sh 10.1 billion in the 2018/19 financial year missing its revenue collection target by Sh5 billion/COURTESY

NAIROBI, Kenya, Jun 25 – City Hall has now turned to motorists and online traders to enhance revenue collection which is crucial in financing its budget for the financial year 2019/2020.

Parking fees which had been pegged at Sh200 following the passage of a Finance Bill in 2018 will now be revised upward to Sh300.

City Hall is projecting to raise internal revenue of Sh17.32 billion in this financial year, which is slightly higher than last year’s revenue collection targets of Sh15 billion.

City Hall only collected Sh 10.1 billion in the 2018/19 financial year missing its revenue collection target by Sh5 billion.

Nairobi County Executive Committee Member for Finance Charles Kerich while reading the budget highlights for the financial year 2019/2020 on Tuesday said that increase in parking fees is in a bid to boost revenue collection from the sector and also ease congestion in the Central Business District.

“The reduction in parking fees from Sh300 to Sh200 for street parking was the cornerstone of the amendments last year and the same has drastically reduced revenue collections from daily parking and increased congestion within the CBD,” he said.

To solve these twin problems, City Hall is set to review parking fees with effect from July 1.

Those doing online businesses will not be spared in this financial year either as City Hall has initiated amendments to the revenue law to have online businesses captured in the revenue basket.

KERICH BUDGET 201920 - Parking fees to rise to Sh300 as City Hall Treasury sets Sh17bn revenue target
Kerich also called upon the Members of Nairobi County Assembly to fast track the enactment of the Betting and Lotteries Act, so as to enable the County Treasury to expand its tax bracket in the gambling and entertainment industry/COURTESY

“Fully aware that in a changing global economy there is general shift to online trading as a way of making businesses efficient and cost effective, the County shall be initiating amendments to the Revenue laws to capture owners of online businesses in the revenue basket,” he stated.

Kerich also called upon the Members of Nairobi County Assembly to fast track the enactment of the Betting and Lotteries Act, so as to enable the County Treasury to expand its tax bracket in the gambling and entertainment industry.

Further, City Hall will restrict issuance of waivers that have the potential of injuring the county’s revenue targets and budget financing.

Despite the exit of JamboPay which has been collecting parking revenue on behalf of the county, Kerich assured that the new county revenue collection system will be able to meet the revenue targets for the 2019/20 financial year.

Author: worldwidenewscast

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