Nyeri, Kiambu Counties lower levies after traders protests

Nyeri Governor Nderitu Gachagua (centre) chairs a cabinet meeting. He has heard the plea of traders and lowered all levies that had been increased in his absence. [PHOTO: JOB WERU/STANDARD]

Nyeri and Kiambu counties have accepted demands by traders to reduce levies.

Both counties had been rocked by demonstrations following tax increments by the respective governments. In Nyeri, the traders including butchers and bar owners marched to the governor's office protesting against the 200 per cent increase of some levies following the passing of the Nyeri County Revenue Administration Act, 2014.

Governor Nderitu Gachagua's return was a blessing as he immediately called for reduction.

Mr Gachagua, who has been away in the United Kingdom seeking treatment, said he had heard the cry of the traders and asked the finance department to act.

He also announced that Finance Executive Martin Wamwea will use his powers to strike out some of the clauses in the Act in a bid to address some of the petitions made concerning the law.

"We would like to clearly state that we want the small business owners to continue with their various economic activities and to also take part in the public participation forms to avoid such situations in future," Gachagua said.

According to the executive directive, the charges for transporting cattle, sheep, goats and pigs will now be per consignment and not per animal as had been stated in the Act. Hoteliers, bar owners and wines and spirits shops owners operating in large towns will now pay Sh45,000 instead of Sh80,000 while those in rural areas will pay Sh25,000 instead of Sh60,000. Application fee for a public health licence will be a uniform charge of Sh1,000.

Private schools also got a much needed reprieve after the charges per child were scrapped. Large private education institutions, with over 100 pupils or who charge fees over Sh50,000 annually will pay an annual registration fee of Sh30,000 and not Sh200,000 and Sh2,000 annually per child as proposed by the new law.

Gachagua made the announcement even as traders had gone to court seeking to have the Government barred from enforcing proposed new levies which they said were inordinately high and unsustainable.

In Kiambu, Governor William Kabogo said the levies taxed on solid waste management and small businesses outside urban centres will be reduced by half. The move, he said, was as a result of increased revenue collection by the county government after the automation of the revenue collection services.

Speaking at his Thika office, Mr Kabogo said there was no need to burden the traders and business people with higher rates yet the county government had registered tremendous revenue collection increment.

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

WASTE MANAGEMENT

The new move will see residents pay Sh1,200 down from Sh2,400 annually for solid waste management.

Hotels and restaurants operating outside urban centres will now pay Sh100 down from Sh200 per month. Small traders operating in remote areas like Lari, Githunguri and Gatundu will not be expected to pay for waste management.

Finance Executive Mary Nguli said the county government is in the process of gazetting the new charges.

"We want to create a conducive business environment for our investors and business people, which explains why the county government is key in having subsidies that will help retain and attract move investors," she said.

Ms Nguli said the move will not affect the financial standing of the county negatively.