Levies worry industries

Contactors laying fibre optic cables in Karen, Nairobi. Photo/ ANTHONY KAMAU/FILE 

In Summary

• Speaking in Kiambu during a governors roundtable meeting, county boss William Kabogo said his government would start levying fees on masts and fibre optic cables that traverse the county.
• Mr Kabogo, however, said his county was coming up with a legislation requiring telecommunications companies in the area to pay levies.

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Manufacturers have criticised arbitrary levies being introduced by county governments, saying, they could stifle investment.

Kenya Association of Manufacturers chief executive Betty Maina said counties should co-ordinate to make levies uniform.

Ms Maina’s remarks come even as Kiambu county indicated it would start levying fees on telecommunications equipment.

Speaking in Kiambu during a governors roundtable meeting, county boss William Kabogo said his government would start levying fees on masts and fibre optic cables that traverse the county.

“The counties should liaise through the Governors Council to have an orderly taxation of businesses.

“Some of them have introduced fees that could end up discouraging investment. These include Nyeri, Kilifi, Kwale and Mombasa,” Ms Maina said, adding: “The governors must introduce taxes in a seamless manner that encourage investments.”

MASTS AND CABLES

Mr Kabogo, however, said his county was coming up with a legislation requiring telecommunications companies in the area to pay levies.

“We shall soon charge fees and levies on the masts and cables for the mobile firms as happens in other parts of the world. They do not pay anything for now while in some countries the charges are per metre,” Mr Kabogo said.

He said that although the county was allocated Sh6.2 billion from the central government, it had inherited a wage bill of Sh5.8 billion in salaries and other employee emoluments.

This, he said, left the county with only Sh400 million for development.

The governor said they would also step up collection of land rates that are currently at 20 per cent. He added that the total rates could be about Sh1 billion and that defaulters would not be given amnesty.

REVENUE COLLECTION

Mr Kabogo said the county will automate revenue collection with the assistance of a county in Dubai, which will provide the equipment.

“The potential to collect Sh7.2 billion that is more than the allocation from the central government is there, and we shall do it to fund development,” he said.

The county has set aside 2,000 acres for agriculture and industrial development and has temporarily stopped any change of use to have a plan for the county.