Nairobi County has announced an ambitious five-year Tariffs and Pricing Policy that will overhaul how residents are charged for public services — from parking fees and business permits to waste collection and market stall rentals. The new policy introduces a cost-based model, ensuring that every fee directly reflects the actual expense incurred by the county in delivering that service. Officials say the framework aligns with Article 209(4) of Kenya’s Constitution and Section 120 of the County Governments Act, which require counties to base their charges on transparent and justifiable cost structures.
Under the proposed regime, the county aims to replace decades of inconsistent by-laws and politically driven fee adjustments with a data-driven approach. The draft estimates the total annual cost of Nairobi’s core services at about KSh 46.9 billion. For example, the policy sets the cost of maintaining and operating 16,900 parking spaces at roughly KSh 569 per slot per day, while the cost of approving a single building plan is estimated at KSh 79,715. The move also introduces a Unified Business Permit, merging multiple trader licenses — including health, fire, and waste levies — into one document pegged at an average cost of KSh 74,743, about 15 percent higher than current rates.
The pricing model extends beyond business services to public markets, rental housing, and health facilities. Market stalls in the city centre (Zone I) will cost about KSh 4,152 per unit, compared to KSh 2,349 in outer neighbourhoods, reflecting geographical cost differences in sanitation, lighting, and waste management. Meanwhile, rental housing units under county ownership will be priced at KSh 9,218 per month, based on total service expenses of KSh 1.84 billion annually. Hospitals such as Pumwani, Mbagathi, and Mama Lucy Kibaki are also included in the costing framework to ensure better resource planning and accountability.
Analysts say the policy could transform revenue collection and enhance transparency if implemented with full public disclosure. However, its success hinges on Nairobi County’s commitment to publish detailed cost data and allow independent verification. If effectively rolled out, the policy could help the city move toward sustainable financing, reduce overreliance on national transfers, and ensure Nairobians pay only for the true cost of the services they receive.