Senate to scrap new county taxes

Kilifi County Senator Stewart Madzayo makes a point during a senators’ press conference in Mombasa, Thursday. With him is Tana River Senator Ali Abdi Bule. [PHOTO: OMONDI ONYANGO/STANDARD]

By BENARD SANGA

Mombasa, Kenya: Senators have adopted a committee report which proposes the outlawing of Finance Bills adopted by the 47 county assemblies, blamed for the new taxes that have sparked protests in various parts of the country.

Consenquently, Senate plans to formally nullify these bills when it resumes mid next month.

Yesterday the senators adopted the report of the Senate’s Committee on Finance, Commerce and Economic Affairs and directed its chairman, Billow Kerrow, to move a motion to quash the disputed Finance Bills.

The report also proposes the transfer of more functions from national to devolved government following an application by 28 counties.

If the bills are annulled, counties will be forced to revert to the rates inherited from defunct local authorities.

Mombasa Senator Hassan Omar, who read the press statement in Mombasa during the conclusion of a senators’ conference, however, said those who had already paid the new levies would be refunded their money. 

“The Senate proclaimed the (Finance) bills as null and void and adapted the resolution to quash them so the (Finance) Committee chairman will take a motion to the Senate once it resumes,” Hassan said.

He said the committee discovered that crucial constitutional procedures were not followed in enacting these bills, adding that many county assemblies were taxing goods or areas where they are not allowed to by the Constitution.

Transition Authority

Omar further said the Senate would write to Transition Authority to direct it to gazette the transfer of ports and ferries to the counties.

It is expected that Mombasa’s revenue would increase by Sh3 billion once the ports’ function is transferred.  “The county will have enough revenue for development and will afford to waive rates for small-scale traders to enable them to grow,” he said.

“We resolved that by February 15, the Senate will also submit a report to the relevant ministries including that of finance on the same. The transfer may not take place in one week or two months but it has started,” he said in an interview.