Reprieve for small-scale traders as county government reduces levies in budget

A trader sorting his Watermelons for sale at Wakulima Market in Nakuru town

?Small-scale traders will pay lower levies for their stalls in the 2018-2019 financial year if proposals by Members of the County Assembly for lower taxes are approved.

The MCAs Thursday amended the draft Finance Bill in a bid to cushion small businesses from harsh economic realities.

If it happens, the lowering of taxes could affect the county government's revenue collections negatively.

The county hopes to raise Sh2 billion locally in the coming financial year. The entire budget for the 2018-2019 financial year is estimated at Sh14 billion.

The County Assembly Finance Committee chaired by Simon Mwangi (Lake View MCA) has proposed a reduction of the annual licence fees for kiosk owners in the central business district from Sh4,000 to Sh2,000. Kiosks operators outside the CBD will pay Sh1,500 instead of Sh2,000.

To operate a kiosk in the residential estates, traders will pay Sh1,200 for a one-year licence, down from Sh1,500.

Those who own shops measuring 50 square metres in the CBD will pay Sh2,500, down from Sh5,500 per year.

Lower rent

Tenants occupying county government houses will also enjoy lower rent beginning June this year. The MCAs propose that the rent be reduced drastically due to the current state of the houses.

Residents of low-income estates like Flamingo Phase I, Kimathi, Abongoloware and Kivumbini phases one to four will have their monthly rent reduced by Sh150 from Sh800 to Sh650 if the proposals are approved.

Those paying Sh1,800 per month will now pay Sh1,200 while those paying Sh2,500 will pay Sh1,700. Tenants in three-bedroom houses paying Sh3,000 per month will pay Sh2,000 if the county assembly approves the Bill.

Boda boda operators who pay Sh400 for monthly stickers to operate within Nakuru town will pay Sh300 if the bill is passed into law.

Those who were paying Sh500 per month will pay Sh300 while those who were parting with Sh200 will pay Sh100.

Public service vehicle operators also have reason to smile after the MCAs proposed the reduction of consolidated county parking stickers from Sh5,000 to Sh3,500 per month.

The MCAs have also proposed the reduction in cost of alcoholic drink licences for bars, wines and spirit shops and night clubs.

Night clubs operating in the CBD will pay Sh5,000 less to acquire licences, if the bill is passed into law. Currently, they pay Sh35,000.

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