City Hall Raises Fees for Traders and Motorists

Nairobi will introduce higher service charges from July 2025 after the county assembly approved a new five-year tariff framework.

The policy, which will run from 2025 to 2030, replaces the long-standing system of by-laws and annual Finance Acts by linking fees directly to the cost of providing services. County officials say the approach will offer clearer and more consistent pricing, while critics warn that households and businesses already facing inflation will feel the impact.

Parking fees form a major part of the changes. County data shows that maintaining Nairobi’s 16,900 parking spaces costs Sh3.54 billion, equal to Sh520 per slot. This amount will guide future pricing, and daily parking charges are expected to rise to Sh520 once the framework takes effect. Revenue forecasts for the next financial year already factor in the increase.

Business charges will also rise. The Unified Business Permit, combining fire, health and waste-collection licences, aims to simplify compliance but will cost more, with some permits rising to Sh74,743. Building plan approvals will similarly be tied to actual costs and set at Sh79,715, reflecting the county’s annual Sh4.52 billion expenditure on salaries, ICT systems, inspection vehicles and insurance.

The framework extends to public markets, where stall fees will depend on sanitation, lighting, security and maintenance costs. Traders in Zone I markets will pay Sh4,152 per stall, while those in Zone II will pay Sh2,349. County Receiver of Revenue Tairus Njoroge said public consultations will inform the final charges, noting that economic conditions and affordability will be considered.

The assembly’s endorsement follows a High Court ruling that nullified Nairobi’s Finance Act 2023. Justice Bahati Mwamuye found the Act unconstitutional due to procedural errors and the absence of a tariff policy. The judgment highlighted Section 120 of the County Governments Act, which requires counties to establish service costs before setting fees, and Article 209(4) of the Constitution, which demands a formal policy framework for levies. 

Majority Whip Moses Ogeto said the new policy is necessary to support services in a growing city and will guide the development of future Finance Acts. The changes are expected to increase costs for motorists, traders and other residents, even as the county aims to strengthen revenue collection and improve financial management.