Nairobi County Unveils Cost-Based Pricing Policy to Overhaul Fees and Boost Revenue
The Nairobi City County Government has introduced a groundbreaking five-year Tariffs and Pricing Policy aimed at tying all county fees—from parking and building permits to market stalls and business licenses—to the actual cost of delivering each service. Governor Johnson Sakaja’s administration says the policy will enhance transparency, promote fairness, and strengthen revenue collection as the county grapples with budget constraints. The framework, anchored in Article 209(4) of the Constitution and Section 120 of the County Governments Act, replaces decades of inconsistent by-laws and ad hoc Finance Act amendments with a standardized, data-driven approach to pricing.
According to the policy document, the county’s total annual expenditure for recurrent and development projects stands at approximately KSh 46.9 billion, forming the basis for the new cost models. Parking fees, for instance, will now reflect the estimated KSh 569 it costs to provide a single parking slot, while building plan approvals will be pegged to an average service cost of KSh 79,715. The document further outlines the cost of running key public health and infrastructure services, including KSh 593 million for Pumwani Maternity Hospital, KSh 1.68 billion for Mama Lucy Kibaki Hospital, and KSh 3,737 per household for food safety services. The county also plans to merge existing fire, health, and waste-collection levies under a Unified Single Business Permit, set at KSh 74,743