City Hall to Increase These Taxes for Nairobians

Nairobi residents will be forced to dig deeper into their pockets as City Hall introduces new levies to finance its 2021/2022 budget.

The county government seeks to raise Sh19.8 billion from its own sources of revenue and expects to receive Ksh19.25 billion from the national government to fund the Ksh39.6 billion budget. The new levies will see property owners charged 0.13 per cent more of the current land value in a proposed new valuation roll. Property owners currently pay land rates at 25 percent of the unimproved site value according to the 1980 valuation roll.

While reading the budget, Finance Executive Allan Igambi said the county will also increase the number of rateable properties from the current 161,000 to approximately 300,000 through implementation of the Geographical Information System (GIS)-based valuation.

The implementation of the GIS-based valuation roll will enable efficient capturing of all properties and rates charged based on the current value.

“The completion and implementation of the GIS-based valuation roll will result in capturing all property and rates charged based on the current land value, a departure from the current state where rates are charged as per the 1980 valuation,” – he said.

The county government also plans to increase the number of registered businesses from the current 188,000 to about 500,000 to increase revenue from a single business permit from the current Kshh2 billion to roughly Sh5 billion. City hall also plans to collect some Ksh200 million revenues from gambling, lotteries, and gaming companies that records an annual turnover of more than Sh5 billion.

The collection will be done by implementing the Nairobi City County Betting, Lotteries and Gaming Act, 2021 that will see the companies taxed at the rate of 20 per cent on gross winnings. The county government will also gazette more parking zones and new charges aimed at helping the county collect Ksh3.02 billion from parking fees. Currently, motorists pay Ksh200 parking fees within the central business district.

Source: kenyas.co.ke

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