Cost of doing business to go up in Mombasa - Daily Nation

Rates hike to increase business cost in Mombasa

Saturday September 8 2018

Mombasa

Mombasa Governor Hassan Joho addresses Sports Personality of the Year organisers at his office in Mombasa on September 4, 2018. The county has proposed increase of levies. PHOTO | LABAN WALLOGA | NATION MEDIA GROUP 

By WINNIE ATIENO
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The cost of doing business in Mombasa is set to increase after the administration introduced new levies in its 2018/2019 Finance Bill.

The county has introduced massive fees for small businesses in the tourism hub.

However, tycoons conducting businesses making huge profits got a reprieve after some charges were scrapped.

For instance, the Sh6,000 landscape construction fee has been scrapped.

The gantry new application one-side fee was dropped from Sh400,000 to Sh200,000 and those with two sides from Sh700,000 to Sh400,000.

Roadshow charges per truck doubled from Sh15,000 to Sh30,000 per day.

PUBLIC CONSENT

Bus stop advertisements application fee of Sh5,000 and annual fee of Sh30,000 was also scrapped. Traders using motor vehicles to trade on pavements will be required to pay Sh30,000.

A showdown is looming at the Tononoka Social Hall where officials of the county government will take the Finance Bill for public participation with hundreds of residents, human rights activists, traders and other players in different industries expected to attend.

Youths engaging in car wash businesses suffered a blow after the county introduced a new code with the operators expected to pay between Sh4,500 and Sh12,000 depending on the number of machines.

Those with five machines and above will pay Sh12,000, between two and four Sh6,000 and those with only one Sh4,500.

LEARNING INSTITUTIONS

Other new codes include the farming sector, small agriculture producer, processor, dealer or exporter with one to four employees to pay Sh60,000, slaughter lab Sh3,000, slaughterhouse for cows and goats Sh5,000 and that of chickens at Sh3,000.

Container Freight Stations were also introduced to a new code of Sh150,000, medium financial institutions with up to four employees to pay Sh100,000, and universities Sh150,000 as the county justified it with fees paid and number of students enrolled.

Professional colleges are to part with Sh100,000, colleges, vocational training centres and polytechnics Sh25,000, international colleges Sh100,000, community-based schools (with over 200 students) Sh25,000, medium with between 100 to 200 learners Sh18,000 and small with 100 learners and below Sh12,000.

“In Nairobi, which is also an urban setting, we pay Sh10,000, a standard rate in all community schools that is not dependent on enrolment,” the Alternative Providers for Basic Education and Training (APBET) secretary-general Juma Lubambo said.

According to Mr Lubambo, there are over 196 community schools in Mombasa with more than 20,000 learners.

“These are learners from very poor background. If we introduce the levies these children will suffer. Sincerely governor Joho the rates should be reduced to Sh12,000,” he added.