The Kenya Transporter Association Ltd (KTA) is calling for the reduction of Nairobi’s truck parking fee to KSh 800.
According to KTA, Nairobi has the highest charges among the five other major counties in the country.
Currently, truck owners in Nairobi are charged a parking fee of KSh 4,000 per day as they supply and operate their businesses in the county.
Additionally, the KTA has argued that the daily parking fee is excessive, unsustainable, and unintentionally promotes corruption.
Despite the high parking fee under the government of Governor Johnson Sakaja, Nairobi County is deprived of substantial legitimate revenue.
“We wish to raise urgent concern regarding the current Nairobi truck parking fee of KSh 4,000 per truck per day, which we consider excessive, unsustainable, and one that unintentionally promotes corruption while depriving the County of substantial legitimate revenue,” read a statement from KTA.
The Association stated that the KSh 4,000 parking fee was economically unjustifiable even if the county was allowing for the metropolitan character of the county.
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Nairobi’s Truck Parking Fee
Citing the total cost an average truck owner pays for a day in Nairobi as the parking fee, the Kenya Transporter Association noted that KSh 25,000 is the total charge for parking a truck in Nairobi per trip.
Further, the Association explained that the KSh 4000 parking levy subsequently consume 16% of gross revenue before truck owners can account for fuel, wages, maintenance, insurance, and operating costs.
The cost structure has therefore made the transportation business unsustainable and ineffective as transporters either choose to incur the extra cost while making a loss or engage in survival tactics that may lead to unintentional corruption, according to the Association.
Additionally, the Association called out unofficial payments to officers during the transportation, which is approximated at KSh 1,000.
However, the extra charges on transporters and truck owners are not presented to the county to add to the Nairobi revenue collection despite being charged.
KTA also pointed out an alleged parking fee cartel in Nairobi County that was contributing to revenue leakage while disadvantaging legitimate businesses.
KTA Purpose for Parking Fee Reduction to KSh 800
According to the Association, capping the parking fee at KSh 800 would significantly reduce the incentives for corruption derived from the fees.
In addition, the county revenue would increase if the revenue leakage is addressed through a parking fee reduction while maintaining viable transport businesses in the county.
Further, the reduction will strengthen Nairobi’s competitiveness as a commercial hub and maintain the county government’s accountability in revenue generation and the survival of legitimate businesses.
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Major Counties Truck Parking Fee Comparison
- Kiambu — KSh 400
- Mombasa — KSh 700
- Eldoret — KSh 500
- Bungoma — KSh 300
- Nakuru — KSh 500
Currently, the KTA has affirmed the readiness of the Association to engage with the Nairobi County to support reforms that will mutually benefit the government and private enterprises.
