× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS

KRA shocks county with Sh154m cut to settle debt

By Ignatius Odanga | Feb 27th 2020 | 1 min read
By Ignatius Odanga | February 27th 2020

The taxman has slashed Sh154 million from the allocation Busia County received from Treasury to settle accrued penalties.

Speaking yesterday in Busia, Finance Executive Phaustine Barasa said the move by the Kenya Revenue Authority (KRA) was unexpected.

Ms Barasa had last year approached the assembly requesting for Sh151 million in a supplementary budget to settle the tax dues.

MCAs however declined to grant the Sh151 million, reducing it to Sh29 million, on grounds that Barasa had failed to produce documents that would prove the authenticity of the KRA debt.

The reduction saw Governor Sospeter Ojaamong’ refuse to assent to the Supplementary Appropriation Bill, 2019.

“KRA has slashed Sh154 million of our allocation. We shall have to sit as a cabinet and come up with a supplementary budget that will be adopted by the assembly,” said Barasa.

"We had earlier negotiated with KRA and reached an agreement that the county government shall be paying Sh13 million every month until the debt is settled. It is now that we have learnt that the whole amount has been slashed."

Separately, boda boda operators have said they are willing to pay taxes if the county addresses their grievances.

Isack Obwolo, the operators' spokesperson in the county, said there were 60,000 motorcycles and if each paid Sh300 monthly in levies, the county would rake in Sh216 million annually.

Mr Obwolo, speaking during a public participation exercise meant for the Finance Bill, however said the county and the operators must negotiate the levies.

Share this story
Uproar over sugar task force report
Industry insiders say sugar sector will remain in trouble unless State-owned millers are given enough money to improve cane crushing.
China rejected Kenya's request for Sh32.8b debt moratorium
China is Kenya’s largest bilateral lender with an outstanding debt of Sh692 billion.