- The new fees will be paid by traders and businesses over and above what Kenyans are currently paying to county governments.
- The government will charge Sh50 per square metre daily for road reserves outside cities, but subject to a minimum of Sh1,000 daily.
Image: FILE
The government has proposed tough regulations to guide the leasing of road reservations which would see hustlers pay Sh3,000 daily for temporary structures within cities.
Kenyans will also be forced to pay a one-off fee of Sh50,000 to be allowed to direct stormwater into public road drainages.
The new charges are contained in the draft Kenya Roads (Roadside Stations) Regulations, 2023 by the Ministry of Roads and Transport.
The latest levies would further strain Kenyans who are reeling from higher taxation, shrinking incomes and lower purchase power.
According to the regulations, the new fees will be paid by traders and businesses over and above what Kenyans are currently paying to county governments.
If the regulations are approved by Parliament, then the temporary settlement of up to six months will attract Sh100 per square metre daily.
The traders will pay a minimum of Sh3,000 if the road on which they intend to operate their businesses is within cities.
The government will charge Sh50 per square metre daily for road reserves outside cities, but subject to a minimum of Sh1,000 daily.
Short-term leasing of road reserve space for between six months to four years will require Sh55,000 in application, processing and administration fees.
Traders will again pay annual rent equivalent to 15 per cent of the unimproved site value and a five per cent annual rent escalation rate.
Besides, the Kenya National Highways Authority is also proposing to levy a Sh50,000 one-time fee for people seeking to construct access roads to their private premises.
This is in addition to the Sh5,000 application fee.
Those seeking to construct access roads or lanes to their petrol stations will pay Sh200,000 as a one-off fee.
The fees will apply to classes A and B as part of the charges being proposed for roadside developments, which include using any portion of the expansive road reserves across the country.
"A person may upon payment of the requisite fee apply to the Director General of the Roads Authority for approval to construct a road to access his premises," reads the draft regulations in part.
According to the regulations, constructing an access road to a shopping mall, a departmental store or its equivalent will see one pay Sh5,000 in application fee.
This will be followed by a Sh300,000 one-time charge once the approval is granted.
At the same time, KeNHA will also allow the leasing of road reserve space to private individuals and businesses for up to 29 years.
Those seeking to lease road reserves within cities for between 10 and 29 years will pay Sh420,000 as application, processing and administration fees.
Charges outside cities will be Sh330,000.
The long-term lease will then attract 15 per cent of the unimproved site value as a stand premium, followed by annual rent equivalent to 10 per cent of the unimproved site value.
After every five years, there will also be 15 per cent rent escalation fees for the unimproved site value.