The year 2023 has been a year where Kenyans have had to tighten their belts and dig deeper into their pockets as the cost of living skyrocketed. The year has been characterized by increased taxation, fuel prices, and the cost of food commodities, just to mention a few.
As 2023 comes to an end and Kenyans get ready for 2024, it looks like things might get a little more expensive.
President William Ruto’s administration plans to impose new, increased fees for a number of services in 2024. It is anticipated that the increased fees will assist different government agencies in operating autonomously and generating income.
Here are a number of charges set to increase by 2024:
SGR ticket prices
A notice issued by Kenya Railways in November indicated that the cost of traveling by SGR on First Class from Nairobi to Mombasa will rise by Ksh1,500 from Ksh3,000 to Ksh4,500 as of January 1, 2024.
The cost of traveling in Economy Class on the Nairobi-Mombasa route will increase from KES 1000 to KES 1500.
A portion of Kenya Railways’ statement said, “This increase is informed by changes in the energy and petroleum sectors, where fuel prices have significantly increased, thus affecting the cost of our operations.”
Kenya Railways attributed the increase in prices to the rise in fuel prices.
NTSA Prices
The National Transport and Safety Authority (NTSA) proposed new charges on December 17, which are expected to be rolled out in 2024. According to NTSA, its move to raise fees by up to 900% is meant to make up for its over KES2.3 billion budget deficit.
In the proposed changes, the road service licenses for public service vehicles will increase by 98 percent, as a road license for a PSV with between 6 and 8 passengers moves from KES 2,700 to KES 5,400, compared to a PSV with 26 passengers hitting KES 8,900.
If implemented, heavy commercial vehicles weighing more than five tons will pay KES 2,000 instead of Ksh1,000 for inspections.
Vehicles under 1000cc will cost KES 3400 to register from KES 1700, while those over 3001cc will now pay KES 16,600 instead of KES 8,300.
The NTSA did point out that before the new fees were approved, the public would have a say in them.
Housing levy
Following plans to restructure the housing fund, Kenyans will also experience an increase in salary deductions. The administration of Kenya Kwanza seeks to legalize the fund and broaden the pool of contributors to include individuals employed in non-formal sectors.
The Social Health Insurance Fund will go into full effect in 2024. The new fund aims to deduct from each employee as much as 2.75 percent of their gross pay. The implementation of the insurance fund was, however, suspended by the high court until the case over its legality is heard.
