Traders sue county government in tax increase dispute
What you need to know:
- Dr Khaminwa told Justice Beatrice Jadean that the traders had exhausted all avenues, including street protests, to persuade the county government to reduce taxes and rates.
- The traders also alleged the county government had threatened to penalise traders who fail to pay the new rates by the end of this month.
- The traders complain that fees for trade licences and permits have been increased by more than 300 per cent, making it difficult to do business.
Traders in Kitui Thursday sued the county government over a law seeking to increase taxes.
The dispute over taxes landed in court after dialogue between the traders and county authorities failed.
Through Nairobi lawyer John Khaminwa, the traders filed their case in the Machakos High Court under a certificate of urgency.
They cited 63 grounds why the County Finance Act should be quashed.
Dr Khaminwa told Justice Beatrice Jadean that the traders had exhausted all avenues, including street protests, to persuade the county government to reduce taxes and rates.
In the suit, Kitui Chamber of Commerce and Industry Chairman Muema Wilson, Kituo cha Sheria and several traders are listed as the applicants.
Included among the grounds for the suit is the county government’s alleged failure to respond to a petition presented to it on February 23 appealing for a review of the rates on single business permits.
SUMMONED
The traders also alleged the county government had threatened to penalise traders who fail to pay the new rates by the end of this month.
Justice Jadean certified the matter urgent and summoned the two sides to an inter partes hearing today.
The judge also directed that the county government and the Attorney-General be served immediately.
The traders complain that fees for trade licences and permits have been increased by more than 300 per cent, making it difficult to do business.
Chamber of Commerce chairman Muema Wilson said under the new tax regime, hair salon owners were required to pay Sh6,000, up from Sh2,500, while hardware shops will pay Sh50,000, up from Sh10,000.
