Business Owners to Pay Ksh 3000 Rent Daily

Proposed regulations in Kenya aim to impose significant financial obligations on various activities related to road reserves, potentially impacting families and businesses.

Owners of temporary structures on road reserves in cities would be required to pay a daily fee of at least Sh3,000, while directing stormwater into public road drainages would necessitate a one-time fee of Sh50,000. These fees would be in addition to existing charges imposed by county governments on traders and businesses operating within their areas.

Temporary settlements on road reserves, lasting up to six months, could incur fees of Sh100 per square meter daily within cities, with a minimum of Sh3,000, and Sh50 per square meter outside cities, with a minimum of Sh1,000.

Short-term leasing of road reserve space for six months to four years would involve an application fee of Sh55,000, followed by annual rent based on the unimproved site value and escalating over time.

Moreover, individuals seeking to construct access roads to their private premises could face a one-time fee of Sh50,000, in addition to application fees, with higher charges for access roads to petrol stations.

Developing access roads to commercial establishments may require application fees and substantial one-time charges upon approval.

Long-term leasing of road reserve space for up to 29 years would entail significant upfront fees and ongoing annual payments, with escalating charges over time.

Additionally, erecting structures, installing billboards, or laying pipes and cables on road reserves would incur various fees and annual charges, depending on the type and size of the infrastructure.

These proposed regulations and fees aim to generate revenue for road development and management but could pose financial challenges, especially for informal businesses operating in road reserve areas.

The potential impact on the economic viability of businesses and the affordability of housing for families warrants careful consideration and stakeholder engagement in the regulatory process.