Pay up: London orders Kenya to settle Sh530m in congestion charges

The Kenyan High Commission in London owes at least £3.2 million to the city of London for unpaid congestion charges.

The unpaid fees and fines have accumulated over a decade, and now London is considering legal recourse through international courts.

Kenya, according to the statistics published by TfL which oversees various modes of transportation in London, including the tube, buses, trams, cars, bikes, and river services revealed that Kenya owes the city Sh530,929,597.

“The majority of embassies in London do pay the charge, but there remains a stubborn minority who refuse to do so, despite our representations through diplomatic channels,” TfL said in a statement.

“We will continue to pursue all unpaid congestion charge fees and related penalty charge notices, and are pushing for the matter to be taken up at the International Court of Justice.”

The congestion charge, launched in 2003, involves a Sh2,400 (£15) daily fee for driving within an area of central London between 7 am and 6 pm on weekdays, and between noon and 6 pm on weekends and bank holidays.

There are discounts and exemptions for various groups of people and vehicles, such as residents, taxis and fully electric cars.

Statistics published by TfL showed the US was leading among the debtors with at least £14.6 million followed by Japan’s embassy, which owes £10.1m, and India’s high commission, owing £8.6m, with Nigeria, China and Russia close behind.

Diplomats have argued that the congestion charge is a tax that they are exempt from paying under the Vienna Convention, but TfL has insisted that the payment is a service charge.

“We and the UK government are clear that the congestion charge is a charge for a service and not a tax. This means that diplomats are not exempt from paying it,” TfL added.

A number of officials at these missions said to owe the City said they dispute the charge as a tax, which will essentially be illegal to charge on a diplomatic mission.

Under the Vienna Conventions of 1961 and 1963, accredited embassies and diplomats cannot pay taxes and are often refunded if those taxes are automatic such as VAT.

However, those privileges do not extend to levies such as the fees you pay to get an extra service.

In London, diplomatic vehicles have designated parking slots for which they don't pay.

London being a resident area for most missions accredited to the UK, some diplomats have argued the charge restricts their work and hence a violation of the diplomatic privilege.

"The dispute is between governments which contend that congestion charge is a tax and must therefore not be paid under provisions of the Vienna Conventions - which provide that a diplomatic representation of a sovereign state must not be made to pay taxes by a host nation. So Kenya and the others refuse to pay," a diplomatic source told the Nation.

The City of London has argued that these are municipal levies by the city and that residents must pay for the running of the city.

Kenya, for example, says it extends similar privileges to foreign diplomatic vehicles.

Embassies and High Commissions in London collectively owe the city more than £143.5 million.