Nairobi City County has unveiled a new five-year tariffs and pricing policy that will guide charges on business permits, parking, building approvals, market fees, county housing, health services, wayleaves and outdoor advertising.
The Nairobi City County Tariffs and Pricing Policy 2025-2030 was published by the Finance and Economic Planning Sector and is intended to provide the framework for determining, reviewing and administering county fees and charges.
According to the policy, the framework targets eight revenue streams that account for about 80 percent of Nairobi’s own-source revenue.
They include trade licensing tariffs, building plan approval tariffs, parking tariffs, market access tariffs, county housing tariffs, health-related fees and charges, wayleave tariffs and outdoor advertisement tariffs.
The county says the policy was developed after finding that many charges were still being guided by county laws and frameworks inherited from the defunct Nairobi City Council, resulting in inconsistencies and gaps in revenue collection.
Cost of Nairobi County Services
The policy estimates Nairobi’s average cost of service delivery over the last three financial years at Ksh46.9 billion annually.
The county says this cost will form the baseline for determining service charges.
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The policy estimates the average cost of processing a building plan approval application at Ksh39,443.
For parking services, the county estimates the average cost per parking slot at Ksh535.
Market access services are estimated to cost Ksh2,270 per market slot, while county housing services are estimated at Ksh5,938 per room.
The document estimates the average cost of food handlers’ medical examination services at about Ksh2,730, food safety services at Ksh7,126 per premises, and pest control clearance certification at Ksh6,495.
Utility firms and other entities seeking wayleave access for infrastructure such as fiber-optic cables, water pipes, and power lines will also be affected.
The county also estimates the cost of wayleave access at Ksh113 per meter and outdoor advertising services at Ksh24,539 annually.
Why City Hall Is Changing the System
Governor Johnson Sakaja said the policy is aimed at enhancing revenue collection, recovering the cost of services, and reducing the county’s dependence on allocations from the national government.
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According to the county, the framework was developed after a review found that many fees and charges were still being guided by laws and by-laws inherited from the former Nairobi City Council, resulting in inconsistencies in pricing and revenue collection.
The county says the new policy will be used to link fees and charges to the actual cost of delivering services.
This means future reviews of county charges will be guided by the cost of providing services such as parking, business licensing, market facilities, housing and public health services.
Under the framework, Nairobi will use data from the previous three financial years to determine the average cost of service delivery.
The county says both direct costs, such as infrastructure investments, and indirect costs, including operations and maintenance, will be factored in when reviewing tariffs.
Future charges may also vary depending on factors such as location, user category, type of service, and county development priorities.
Inflation, depreciation and subsidies may also be considered when tariffs are reviewed.
Governor Sakaja’s administration further stated that the framework will guide charges affecting traders, developers, motorists, utility companies, advertisers, property owners and residents seeking county services.
The policy will remain in force between 2025 and 2030 and be subject to periodic reviews and public participation.
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