New rates are punitive, Thika traders tell Kabogo

Thika MP Alice Ng'ang'a addresses protesting traders in Thika yesterday. The MP told them to stop paying taxes until the current rates are reduced. [PHOTO: KAMAU MAICHUHIE/STANDARD]

Kiambu, Kenya: Traders in Thika sub-county have vowed not to pay new levies introduced by the county government until their grievances are heard.

The hundreds of traders who staged a peaceful demonstration to the governor's office yesterday handed a memorandum containing their grievances to the county government. Top on the list is the demand to reduce the current levies.

Alfred Wanyoike, the secretary general of Thika Central Business Traders Association, said the new rates recently enacted by the county government were hurting traders

"The high taxes imposed on traders are not sustainable because many businesses will be forced to close shop, hence become jobless," said Mr Wanyoike, who was accompanied by Thika MP Alice Ng'ang'a, Jude Njomo (Kiambu) and Kimani Ichungw'a (Kikuyu).

The traders said the new rates had more than doubled, yet the county government was not offering them the requisite services in return.

"We call on the assembly to come up with laws that are investor-friendly if they want to promote businesses, not ones that are punitive," said Jane Wangunyu the chairperson of Madaraka market in Thika.

NEW RATES

"The county government has no choice but to dialogue with traders. These punitive rates are scaring away investors," said Mr Ichungw'a.

This the second time the county is witnessing protest after the assembly passed the controversial Finance Act 2014.

The move will see residents pay Sh1,200 down from Sh2,400 annually for solid waste management, while hotels and restaurants operating outside urban centres are required to pay Sh100 down from Sh200 per month.

According to the law, expectant mothers are to pay Sh1,000 to undergo an ultra-sound in public hospitals. Tenants living in county houses have to part with Sh2,500 a month up from the current Sh700.

Earlier, the county government denied it had arbitrarily raised rates for traders, saying there was enough public participation in the process of enacting Finance Bill 2014.

Finance Secretary Mary Nguli said everybody was involved in the formulation of the new rates during the public participation period.

"We lowered some rates recently and we are in the process of gazetting others. We are calling on traders and residents to stay calm," said Nguli.

According to Governor William Kabogo, levies taxed on solid waste management and small businesses outside urban centres are to be reduced by half.

The move, he says, is a result of increased revenue collection by the county government after the automation of the revenue collection services.

"The automation of the revenue collection system has helped seal loopholes where the county government was losing millions. As result, we would like to pass that to the residents by lowering the charges that the county had previously increased," said Kabogo.