Mombasa Governor Hassan Joho. FILE PHOTO | NMG
At least 500 small and medium-sized
enterprises (SMEs) operating in Mombasa County "collapsed" in the last
one year due to excessive levies.
Mombasa branch Kenya
National Chamber of Commercial and Industrial (KNCCI) chairman, James
Mureu, said the excessive levies, compounded by the current harsh
economic times, have made it difficult for small traders operating in
the coastal city to gain stability.
“When you charge
these small traders much beyond what they made on a daily basis, you are
basically killing them right from the infancy stage,” added Mr Mureu.
He
was speaking at Sarova Whitesands Beach Resort and Spa during a two-day
conference of SMEs organised by the Mombasa County government, Capital
Markets Authority (CMA), Kenya Commercial Bank (KCB)
Micro and Small Enterprise Authority and Youth Fund Enterprise and KNCCI.
Mr
Mureu told Mombasa Governor Ali Hassan Joho, who opened the conference,
to address the current insensitive business environment facing his
members.
He said unless the issue is addressed, the county’s economy would be at stake.
Small
traders operators present at the conference complained to Mr Joho that
besides single business permits, his county has imposed hefty charges on
branding of their business premises amid harassment from country
askaris.
“As SMEs we feel being overcharged. I am
charged Sh17,000 for a single business permit and then an additional
Sh60,000 for branding the window of my business premises.
"I
am on the second floor of a building and unless I brand, no one can see
my business. My business is not operating on a walk in-walk out basis. I
depend on referrals from friends and social media,” said an event
organiser, Ms Martha Kokie of Warid Fashion.
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Branding component
Mr
Mureu said branding is a key business component for small traders to
market their businesses to attract customers and it was unfair for the
county to impose separate charges besides the annual business permits.
“How
would people know that I am doing M-Pesa business, if I cannot brand my
window M-Pesa and why should askaris come and ask me for a bill? Every
business pays single business permit.
"It is incumbent upon the county to respect that I am doing business and I am paying single business permit,” added Mr Mureu.
He
said the county should regard the over 30,000 small traders operating
in Mombasa are key partners in revenue generation compared to mega
companies with sound financial stability.
According to
Taufiq Balala, the county acting trader executive officer, the decision
by the county government to impose branding charges on small traders is
meant to create sanity in the business.
Mr Balala
alleged that the county is facing a proliferation of branded posters of
businesses placed in strategic places on pedestrian ways, even
endangering motorists.
“We usually we get feedback from
stakeholders and then come to a compromise by bringing changes to our
rates and maybe after this we can discuss further,” he pledged.
However, Governor Joho assured the small traders that his administration will address their concerns.
He said the amount of levies charged by his administration is relatively lower compared to other counties.
He
asserted that the cost of a single business permit was lowered from
Sh23,000 to Sh12,000 leading to an increment of M-Pesa outlets from 270
to 770 in the last year.
“That review led to an
increment of new 500 additional M-Pesa outlets, which means we are doing
very well. It is not true we are overcharging small traders,” said Mr
Joho at a press briefing outside the forum.
The
governor also assured the business community of his commitment to ensure
the August elections are free of chaos, which would affect businesses.
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