Hustlers in Kenyan cities are facing new regulations that require them to pay a minimum fee of Ksh 3,000 daily for temporary structures located on road reserves. These proposed regulations also allow the government to lease road reserve space.

Kenyans will also need to pay Ksh 50,000 as a one-time fee in order to be permitted to divert stormwater into public road drainage systems. Families and companies that own properties and businesses along the highways may find their financial burden increased by these fees, which are detailed in the draft Kenya highways (Roadside Stations) Regulations, 2023. The costs will be on top of what county governments currently impose on merchants and other companies doing business within their borders.

Below is a breakdown of the proposed fees:

1. Temporary Settlements (Up to Six Months)
Within cities: Ksh 100 per square meter per day, with a minimum of Ksh 3,000.
Outside cities: Ksh 50 per square meter per day, with a minimum of Ksh 1,000.

2. Short-Term Leasing (Six Months to Four Years):
Application, processing, and administrative fees: Ksh 55,000.
Annual rent (15% of the unimproved site value) and a 5% annual rent escalation rate.

3. Access Roads to Private Premises:
Constructing access roads to private premises: Ksh 50,000 one-time fee (in addition to application fees).
Access roads to petrol stations: Ksh 200,000 one-time fee.

4. Long-Term Leasing (10 to 29 Years):
Within cities: Ksh 420,000 (application, processing, and administrative fees).
Outside cities: Ksh 330,000.
Annual rent (15% of the unimproved site value) and rent escalation charge (15% of the unimproved site value every five years).

These regulations aim to manage roadside developments and utilize undeveloped land earmarked for future roads.