The Treasury is targeting at least Sh55.8 billion from administrative fees and charges for services such as issuing national identity cards (IDs), passports, work permits and marriage certificates in the next financial year starting July, up from Sh28.3 billion in the current year.
The additional billions are crucial in a year when the State will struggle for additional cash after President William Ruto bowed to public demands to axe new tax measures contained in the controversial Finance Bill, 2024, which would have yielded Sh303 billion in fresh collections for the exchequer.
The fees will ride on anticipated increased demand for public services such passports and high charges implemented earlier this year.
The windfall is expected to boost funding of operations at respective ministries and State departments which have been looking to wean themselves off exchequer support.
The Treasury estimates appropriations in aid to total Sh426 billion in the 2024/25 financial year or about 12.7 percent of the total revenues, which are projected at Sh3.343 trillion.
New immigration visas and other consular fees are expected to generate Sh21.1 billion in collections from a previous estimate of Sh5.6 billion for the year ending June 30 and will represent the highest collections under administration charges.
Passport fees are meanwhile expected to generate Sh5 billion revenues in the fiscal year starting July 1, up from Sh3.2 billion previously.
Alien cards, which are mandatory for all foreign nationals residing in Kenya, now cost Sh5,000 effective from March 1 2024 from Sh1,000, while the penalty for failing to obtain a new alien card was revised from Sh1,000 to Sh10,000.
Applications to be a Kenyan citizen by marriage meanwhile cost Sh100,000 in contrast with Sh30,000 previously while East African nationals will fork out Sh50,000 from Sh5,000.
Ex-Kenyan citizens and residents wishing to get permanent residence pay a Sh50,000 application processing fee and Sh100,000 and Sh750,000 in permanent resident certificate issuance fees respectively.
The higher immigration fees, while boosting government collections, risk diluting Kenya’s status as a preferred destination for expats and multinationals.
Land adjudication and case fees are expected to rise at the fastest to Sh94.5 million, down from a conservative estimate of Sh291,585 previously.
Identity card fees and the registration of marriages are meanwhile expected to raise Sh3.4 billion and Sh253.2 million respectively, in contrast to Sh118.6 million and Sh168.8 million presently.
From January this year, the cost of a first-time ID application soared to Sh1,000 from no cost previously while duplicates or replacements now attract a fee of Sh2,000 from Sh100 previously.
With the changes in fees having been gazetted in November last year, the cost of obtaining an ordinary series A 34-page passport rose to Sh7,500 from Sh4,500 in 2023.
The Ministry of Interior indicated the charges had been adjusted to accommodate the views of the public following an earlier uproar that saw some prior notices revoked.
The ministry also cited funding pressures in its move to raise the essential fees and charges.
“The intended revised charges, fees and levies are informed by the need for Kenya’s self-reliance in financing the national budget, to wean the country from unsustainable debt that poses grave threats to our sovereignty and the dignity of future generations,” the ministry stated.
In a move to alleviate some of the public concerns, the ministry stated it would defray the costs of the revised charges on the acquisition of national IDs through a waiver for indigent Kenyans who demonstrate inability to pay.
Earlier on, the Ministry of Lands proposed to increase a number of service fees under a World Bank- backed revenue expansion plan.
Among the services targeted in the increase of up to 100-fold were the cost of an official land search and the cost of registering documents, including deeds of indemnity, agreements and trust deeds.
The Lands ministry said the revisions sought to harmonise some of the fees which it considered unreasonably low or unaligned to prevailing market rates.
At the same time, the ministry argued the revisions would help boost revenues outside of raising tax rates.
Other entities such as the Kenya Wildlife Service (KWS) and the National Museum appeared to have taken cue, with former having raised entrance fees to national parks and reserves.
