KRA takes over Nairobi parking fees collection from Monday

Tuesday March 24 2020
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Cars parked on a Nairobi street. City Hall appointed KRA to collect revenues through a notice in the Kenya Gazette early this month. PHOTO | FILE | NATION MEDIA GROUP

By JOHN MUTUA

Nairobi residents are set to pay parking fees and other levies to the taxman starting Monday morning after City Hall handed over key functions to the national government.

The Kenya Revenue Authority has taken over the mandate of collecting all levies and taxes paid to City Hall for a two-year period up to March 16, 2022.

City Hall appointed the taxman to collect revenue through a notice in the Kenya Gazette early this month weeks after ceding some of its functions to the national government.

Embattled Governor Mike Sonko, who has been barred from office on graft charges since December last year, handed over the health, transport, public works, utilities, planning and development functions to the national government.

The devolved unit has consistently failed to hit revenue targets with the highest collection being Sh11.7 billion in the 2014/15 financial year.

It remains to be seen whether KRA’s automated systems will seal loopholes through which millions of shillings were lost daily in cash payments for parking and other services.

Mr Sonko, at the beginning of this month, waived Single Business Permits (SBPs) for all new enterprises starting March 1.

City Hall collected Sh1.992 billion from SBPs in 2018/19, making it the third biggest source after rates at Sh2.04 billion and parking Sh1.95 billion.