Stop multiple taxation, Rotich tells counties

Counties have been urged to reform their taxation systems to attract investment by not overburdening Kenyans and investors.

Speaking at Leisure Lodge Resort in Kwale Monday during the county government’s development forum, Cabinet Secretary for National Treasury Henry Rotich said multiple taxation could scare away investors.

“It is very clear on what the national government and counties are supposed to tax and so the taxation system implemented by counties is very important to the private sector,” he said.

The challenges

Rotich said already some counties have had such challenges in implementing taxes but disclosed that this would be discussed in a forthcoming conference with governors.

Giving an example of Kwale, the cabinet secretary noted that the county was endowed with resources and if efficient taxation was put in place, it would promote investment.

“To support private sector, your taxation should not chase investors away,” he said and referred to a case last year when Kwale County Government wanted to tax Base Titanium mining company by asking it to pay a levy for transporting minerals from the area. Mombasa County also wanted to impose its own tax on the firm but Rotich protested in a letter advising the two counties to stop double taxation.

Speaking Monday, Rotich said counties should implement their own integrated development plans in collaboration with private sector.

He said county integrated development plan should be aligned with Vision 2030 that promotes economic growth, prosperity, social development, improving health indicators, good governance and efficient delivery of services.

Others present at the Monday’s forum were UN Resident Coordinator Nardos Bekele, Kwale Governor Salim Mvurya and his Turkana counterpart Josephat Nanok.

Devolution challenges

Ms Bekele said the UN was aware of the challenges facing devolution and was committed in supporting development in Kenya from national to county and even sub-county levels.

“At the county level, citizens’ aspirations are encapsulated in the county integrated development plans (CIDPs). This is why the UN is supporting the implementation of the CIDP in Kwale to ensure that a true development partnership is built from the ground up – not top down – and to ensure that the people’s voices are heard, priorities understood and their needs realised,” she said.