The government has introduced stringent regulations for the leasing of road reservations, proposing that individuals labeled as hustlers pay a daily fee of Sh3,000 for temporary structures within cities.
Additionally, Kenyans will be obligated to pay a one-time fee of Sh50,000 to direct stormwater into public road drainages.
These new charges are outlined in the draft Kenya Roads (Roadside Stations) Regulations, 2023 by the Ministry of Roads and Transport.
The proposed levies, if approved by Parliament, would impose additional financial burdens on Kenyans already grappling with heightened taxation, reduced incomes, and diminished purchasing power.
As per the regulations, traders and businesses will be required to pay these new fees on top of existing payments to county governments.
For temporary settlements lasting up to six months within cities, traders will be charged Sh100 per square meter daily, with a minimum payment of Sh3,000. For road reserves outside cities, the government will impose a daily fee of Sh50 per square meter, subject to a minimum of Sh1,000 daily.
Short-term leasing of road reserve space for periods ranging from six months to four years will incur a Sh55,000 fee for application, processing, and administration.
Traders will also be obligated to pay annual rent equivalent to 15% of the unimproved site value and face a 5% annual rent escalation rate.
Additionally, the Kenya National Highways Authority (KeNHA) is proposing a one-time fee of Sh50,000 for individuals constructing access roads to private premises, along with a Sh5,000 application fee.
Those planning to construct access roads or lanes to petrol stations will face a one-time fee of Sh200,000, applicable to classes A and B in the proposed charges for roadside developments.
Moreover, KeNHA is considering leasing road reserve space to private entities and businesses for durations of up to 29 years.
The application, processing, and administration fees for leasing road reserves within cities for 10 to 29 years will be Sh420,000, while charges outside cities will amount to Sh330,000.
The long-term lease will further incur a stand premium of 15% of the unimproved site value, annual rent equivalent to 10% of the unimproved site value, and a 15% rent escalation fee for the unimproved site value every five years.