Trade licence renewal set to become easier

A new county law will see traders renewing their trade licences exactly 12 months after the date of issue.

This will be a departure from the current trend where traders must renew their licences by December 31 regardless of the issuance date.

The proposals are contained in the Nairobi City County Trade Licensing Bill 2018, which was unanimously passed last week by the city assembly and is awaiting the assent of Governor Mike Sonko.

The Bill, if implemented, will give traders the liberty to pay either quarterly, biannually or annually and avoid the last minute rush associated with licence renewal.

Finance budget and appropriation committee chairman Robert Mbatia, who is the sponsor of the Bill, said it was meant to maximise the county's revenue collection.

Renewing deadline

He said in the past, many traders were unable to meet the licence renewal deadline denying City Hall revenue.

“The Bill aims at making more traders compliant with the renewal of licences by giving them more time to plan. Traders will be able to pay quarterly, half year or full year fees which is easier because they do not have to make the entire payment at once," stated Mbatia.

Mbatia, who is also the Kariobangi South ward rep, said the Bill would help reduce corruption in the licensing department, where traders have traditionally been made to pay bribes to secure licences before the renewal period lapses.

Traders have also been complaining that the renewal process is intentionally slowed down by licensing officers to ensure that they get kickbacks so as to fast-track the same.

At the same time, hawkers will be required to pay Sh500 monthly to operate in the Central Business District (CBD) and Sh30 per day for those operating outside the zone. On top of that, hawkers will be expected to display their operating licences.

Traders using vehicles to display goods have also not be spared by the Bill, which seeks to compel them to pay an additional tax of Sh10,000 annually.

Hawkers displaying their goods on vehicles will be required to pay an annual fee of Sh15,000 up from Sh5,000. 

The Bill calls for the formation of a trade licensing department, which will be charged with issuing licences, advising the trade executive on classification of businesses, carrying out routine inspections on compliance and policing compliance.

More details

The Bill further states that the licence of operation will bear the details the goods being sold, location of operation and the working hours as authorised by the county.

“No person shall act as a hawker unless he or she is in possession of a valid hawker’s licence unless they operate businesses exempted from licensing. A hawker shall be required to produce his or her licence on demand for inspection by the enforcement officer at all times,” states the Bill.

Shoeshiners, street vendors and cleaners will be required to pay Sh2,500 per year down from Sh5,000.