Private developers face prosecution for tax evasion

By JOSEPH MASHA

KILIFI; KENYA: Private developers owe the Kilifi County government an estimated Sh1.5 billion in unpaid rates and taxes dating from the time of the defunct local authorities in the region.

Kilifi County governor Amason Jefwa Kingi said this money has not been collected for years because most of the defaulting developers have been evading the taxes in collusion with council officials from the defunct local authorities and promised to follow up and prosecute them.

“My government has done some investigation into collection of taxes by the local authorities that were operating in the county and we have discovered that most private developers have been evading to pay rates,” said Mr Kingi, who spoke to journalists on Saturday after Madaraka Day celebrations in the county.

The celebrations were attended by the county Senator Stewart Madzayo, nominated Senator Mvita Kisasa and county women representative Ms Asha Karisa.

The governor said mineral explorers and miners have to pay some levies for the raw minerals they get from the area.

He said there was a trend where miners of minerals like iron ore, manganese and limestone had been refusing to pay the necessary levies claiming that they are only supposed to pay after processing the mineral.

Richly endowed

“Kilifi County is endowed with many resources including minerals like iron ore, manganese  and limestone, which were being explored by many companies including  those  of cement processing, but the strange thing is that they have not been paying the necessary levies,” noted  Kingi.

Kingi further warned that his government will close down all villas that are operating without proper registration.

He noted some villas have changed to hotels, which accommodate tourists and offer hotel services, but they are not registered as such and they do not pay the necessary taxes. Kingi said most hotels in the area were operating without guests.