Kenya's counties warned against new fees to protect economic relief gains

Kenya’s 47 county governments have been urged to avoid introducing new fees and levies. The call aims to protect the fiscal gains made at the national level. Counties must also ensure their Appropriation Acts are in place by June 30, with Finance Acts to follow later if needed. The National Treasury and Accounting (NTA) chief executive, Patrick Nyangweso, has advised counties to focus on production to boost their own revenue. This approach could reduce the need for additional fees that might strain taxpayers. Kenyans are already facing a difficult economic climate, and further financial burdens could undo the relief provided by the national Finance Act.

Counties have the power to introduce or raise fees for services like parking through their Finance Bills and Acts. However, such increases risk cancelling out the benefits of national fiscal policies. Small businesses, in particular, could suffer under the weight of new or higher levies.

To align with national efforts, counties are encouraged to harmonise their Acts with the national Finance Act. Public engagement is also recommended to prioritise improvements in livelihoods, enterprise growth, and opportunities for youth and women. The national government has already supported counties with projects such as affordable housing and markets. Counties must finalise their Appropriation Acts by the end of June. Avoiding new fees and levies will help sustain the economic relief achieved at the national level. The focus on production and public involvement could strengthen local revenue without overburdening residents.