Kisumu council increases rates to plug budget gap

Kisumu Municipal Council has increased its rates by between 30 and 200 per cent as it seeks to plug its budget deficit.

The council said it would be tightening its revenue collection as it seeks funding for the shortfall, which currently stands at Sh620 million.

Town Clerk Christopher Rusana said that the cost of living and the town’s maintenance costs had risen, adding that this called for a review of the municipal council property charges.

“Exempted from the list of increased charges are market stall fees and bus parking fees because those who rent market space and stalls are low income earners,” said Mr Rusana.

The local authority had in the past relied heavily on funding from the central government though the Local Authorities Transfer Fund.

Parking a private vehicle in town will now cost Sh 100 from Sh50 while those who rent municipal houses, for instance in Lumumba Estate, will now be expected to pay Sh2,000 from Sh 1,000.

Mr Rusana added that vaccination fees in public hospitals had also been increased .

For example, yellow fever injections will now cost Sh2,500 and anti-rabies shots will be Sh4,400.The costs were previously Sh500 and Sh3,000 respectively.

“A person who owns a piece of land that goes at Sh100,000 and was paying the council Sh1,000 monthly and will now be required to pay Sh1,500 monthly,” Mr Rusanna.

A copy of the reviewed fees and charges are available at the treasurer’s office at a fee.

Mr Rusana added that increasing service charges was a delicate issue and had initially caused an uproar when municipal market and matatu operators heard the news.

“We therefore heard their plea and they are exempted from the list, though today’s advert stated that they are among the affected,” Mr Rusana.

While releasing the Sh1.7 billion budget last month, the Kisumu Municipal Council’s finance committee chairman, Walter Muge, said that the council will start collecting levies that are currently not being exploited to finance the current deficit.

Boda boda operators are now required to pay a monthly fee of Sh200 for each motorcycle in operation. Some of the businesses affected in the new tax measures are fishermen, tour operators, quarry operators and motorcycle taxis.

Through aggressive revenue collection for the fiscal year, the council hopes to clear the outstanding deficit. Out of the Sh1.7 billion budget, Mr Muga said that Sh 340 million will clear part of the debts for the year.

Source: www.businessdailyafrica.com

<back