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County Governments Act

120. Tariffs and pricing of public services

Edition: 2022-12-31 · In force

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120. Tariffs and pricing of public services

(1)A county government or any agency delivering services in the county shall adopt and implement a tariffs and pricing policy for the provision of public services.
(1A)Notwithstanding subsection (1), a county government or any agency delivering services in the county shall adopt and implement tariffs and pricing policy subject to the existing National Government laws and policies.
(2)A county government or agency delivering services through service delivery agreements, shall comply with the provisions of this section.
(3)A tariff policy adopted under subsection (1) shall reflect the following guidelines—
(a)users of county services should be treated equitably in the application of tariffs, fees, levies or charges;
(b)the amount individual users pay for services should generally be in proportion to their use of that service;
(c)poor households shall have access to at least basic services through—
(i)tariffs that cover only operating and maintenance costs;
(ii)special tariffs or life line tariffs for low levels of use or consumption of services or for basic levels of service; or
(iii)any other direct or indirect method of subsidies of tariffs for poor households;
(d)tariffs shall reflect the costs reasonably associated with rendering the service, including capital, operating, maintenance, administration and replacement costs, and interest charges;
(e)tariffs shall be set at levels that facilitate the financial sustainability of the service, taking into account subsidy from sources other than the service concerned;
(f)provision may be made in appropriate circumstances for a surcharge on the tariff for a service;
(g)provision may be made for the promotion of local economic development through special tariffs for categories of commercial and industrial users;
(h)promotion of the economic, efficient, effective and sustainable use of resources, the recycling of waste and other appropriate environmental objectives; and
(i)full disclosure of the subsidies on tariffs for poor households and other categories of users.
(4)A tariff policy may differentiate between different categories of users,debtors, service providers, services, service standards, geographical areas and other matters as long as the differentiation does not amount to unfair discrimination.
(5)A county government may make laws and regulations to give effect to the implementation and enforcement of tariff policies.[Act No. 43 of 2016, s. 159(b).]
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Source: Kenya Law