Traders operating without a business licence in Nairobi will be forced to pay double the fees being demanded within 24 hours following changes to City Hall’s revenue collection law.
Those who fail to pay the double permit fee within a day will be charged in court besides facing the fines for the breach, says the amended Nairobi City County Revenue Act of 2015.
The move is aimed at increasing compliance in payment of annual permits whose income has trailed targets and remained static.
“Any business premise that operates without a valid regulatory licence or permit shall be liable to a penalty of double the assessed licence or permit fee within 24 hours of such demand,” reads part of the amendments.
The county is targeting to raise Sh3.6 billion from trade permits in the year to June, accounting for a quarter of City Hall’s own revenues which is set at least Sh15 billion.
It’s the third largest revenue earner after parking fees and land rates with Sh1.7 billion and includes single business permit, garbage fees, health and fire risk certificates.
Single business permits are one of the most common licences and charges range from Sh10,000 to Sh100,000 depending on the size, type, and location of the business in the capital.
Small shops pay between Sh9,500 and Sh13 for the SBP licence, eateries with a sitting capacity of about five customers are charged Sh31,000 while bars pay Sh100,000 for the permits.
Businesses will pay between Sh1000 and Sh100, 000 for fire certificates, between Sh1,000 and Sh20,000 for health certificate depending on the type of business and up to Sh10, 000 for garbage collection per month.