News

Nairobi residents slapped with new levies

Tuesday, June 29th, 2021 00:00 | By
Nairobi county Finance Executive Allan Igambi during the 2021/22 Budget reading recently. Photo/PD/David Ndolo

Nairobi residents should be prepared to dig deeper into their pockets as City Hall introduces new levies as it seeks to enhance its own source revenue collection.

Part of the new levies will see landowners pay more as the rates have been set at 0.13 per cent of the current land value in a proposed new valuation roll. 

New development comes as City Hall seeks to raise Sh19.8 billion from its own source revenue in the financial year ending June 30, 2022, to fund its Sh39.63 billion annual budget.

In order to implement the Geographical Information System (GIS)-based valuation, the county government will increase the number of ratable properties from the current 161,000 to approximately 300,000.

While presenting the county’s Budget last week, Finance Executive Allan Igambi said completion and implementation of the GIS-based valuation roll will result in capturing all properties and rates charged based on the current land value.

 “This is a departure from the current state where rates are charged as per the 1980 valuation. This will automatically double the rate of income,” he said.  

Sector players

City Hall has also started implementing the Nairobi City County Betting, Lotteries and Gaming Act, 2021. 

The players in the sector with an annual turnover of more than Sh5 billion will be taxed 30 per cent by City Hall.

As highlighted in the Act, all betting, lotteries, and gaming licensed under the new law will attract an entertainment tax chargeable at a rate of 20 per cent on the gross winnings of all betting, lotteries, and gaming activities. Igambi noted that the betting licences have potential of raising more than Sh200 million annually.

“We have proposed minor adjustments and new charges through the Finance Bill, 2021, with a potential of increasing the revenue by Sh2 billion,” he said.

Further, the county is set to increase the number of registered businesses to 500,000 from the current 188,000.

“Increase will be through collection, updating and cleansing data to have accurate record on single businesses in,” Igambi said.

Due to the increase of registered businesses, revenue from single business permits will increase to Sh5 billion from the current Sh2 billion.

 At the same time, the county has resolved to introduce monthly seasonal tickets for building materials transporters, as part of new revenue-raising measures.

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