Nairobi Governor Mike Sonko has gone to court to challenge the new budget proposals that will force Boda Bodas and Tuk Tuk operators to have third party insurance.
In Henry Rotich’s budget, Boda Boda riders are supposed to pay Sh3,500 a year
Sonko argued that last week’s budget proposal was unconstitutional since Treasury failed to seek public views before widening the tax brackets.
Rotich, in his budget speech last week, introduced a new tax measure for the operators in which all boda boda and tuk-tuk operators will be required to obtain third-party insurance to cover their passengers and pedestrians in case of an accident.
“We have over 1.2 million boda-boda and over 184,000 tuk-tuk operators who are now at risk of losing business because they cannot afford the insurance,” Sonko said.
Other politicians who supported Sonko include Gatundu South MP Moses Kuria, East Africa Legislative Assembly MP Simon Mbugua, former MPs Kalembe Ndile, Reuben Ndolo and politician Stanley Livondo.
The want to stop the implementation of the 2019/2020 budget proposals until the case is determined.
Through lawyer Evans Ondieki, the politicians accused the Treasury CS of unilaterally reaching the decision to tax passenger motorcycles known as boda-boda and tuk-tuk taxis.
They said this will burden the public who rely on them.
“The CS should have consulted the Attorney General before taking such drastic measures that if not stopped can bring down a big industry that employs thousands of youths,” Ondieki said.
The appetite for more taxes shows how broke Treasury is given the high level of the national debt and mounting redemption burden.