Editorials

EDITORIAL: City must justify use of cash before raising taxes

sonko

Nairobi Governor Mike Sonko. FILE PHOTO | NMG

Nairobi County has just released its budget just like the other counties, not unpredictably seeking to raise taxes for city dwellers. The new levies include a Sh1,000 annual fire certification fee and a similar levy for inspecting dogs and cats that will be part of the Sh17 billion taxes targeting city businesses and residents. Businesses will also pay increased fees of up to Sh100,000 every year.

But what stands out is the garbage collection fees of between Sh100 for the slums to Sh600 for the upmarket estates. That this was not unexpected is needless to say here given that the city is reeling from huge liabilities and serious service delivery gaps.

However, the fundamental question that immediately arises is how prudent the new taxes are. For one, they will raise the cost of doing business in the city at a time the capital is quickly ceding ground to neighbouring counties especially Kiambu, Machakos and Kajiado.

City fathers should stop behaving as if Nairobi is what it was to the economy years back and make policies based on sound research and economics.

Unfortunately, the latest yoyo levying of the car park fees—first reduced to Sh200 for a congested CBD before being doubled—indicates serious capacity issues with city planning.

But the second issue is even more important. There is no word on how the city intends to deliver the services after collecting cash from largely unwilling residents—after no public participation.

For instance, if Governor Mike Sonko has miserably failed in cleaning public spaces, how does he justify taxing people who have alternative means of collecting garbage at their homes?

It is important to note that since the 1990s, garbage collection for homes has been a private function and relatively efficient. Indeed, the city government has been so inept that the younger generation is not aware it is supposed to collect home trash.

What Mr Sonko and his band need to do first is issue a blueprint of how they want to deliver the services, already paid for through multiple taxes by businesses and homeowners.

Unless prudent management is put in place, raising taxes or introducing new ones will not help solve the myriad problems in the city.