In a move aimed at easing the financial strain on businesses and residents, the County Government of Makueni has unveiled a series of tax reforms and relief measures. These initiatives, announced by Governor Mutula Kilonzo Jr. on Thursday, November 28, promise to bring significant economic benefits to traders, motorists, and other stakeholders within the county.

New Payment Flexibility and Discounts

Business owners in Makueni can now pay for their permits and licenses in installments, with options for quarterly, half-yearly, or annual payments. The new regulations, aimed at making compliance easier for small and medium enterprises, offer a 10% discount for small-scale and medium-sized enterprises (SMEs) and a 5% discount for large businesses paying unified invoices in full. This flexibility reflects Makueni’s commitment to supporting its growing entrepreneurial community while fostering a culture of compliance with tax obligations​.

Rent Reductions and Waivers

Significant rent reductions have been implemented for traders operating within the Emali Modern Grocery Market and the Emali bus park. Retail stall rent has been reduced from Ksh3,000 to Ksh2,000, while bus park rent now stands at Ksh1,500, down from Ksh2,500. These reductions aim to boost local commerce, especially for small traders impacted by the high costs of operations during challenging economic times​.

Additionally, the county government announced a 50% waiver on rent arrears for traders and motorists who accrued debts during the COVID-19 pandemic. These measures recognize the lingering effects of the pandemic on businesses and seek to provide relief to those most affected​.

Comprehensive Revenue Strategy

The tax reforms align with Makueni’s broader fiscal strategy, which targets a revenue collection of Ksh1.24 billion for the current financial year. The county recently launched a cashless payment system designed to streamline transactions, reduce corruption, and enhance accountability. This system consolidates multiple utility charges into a single invoice, enabling payments via mobile transfer and other digital platforms. Public education campaigns are underway to familiarize residents with these changes​.

Governor Mutula Kilonzo Jr. emphasized that these initiatives are not only aimed at boosting compliance but also at improving service delivery. The government’s revenue collection officers have been urged to treat citizens with respect and professionalism to encourage timely payments and foster trust​.

Regional Comparisons and Trends

Makueni’s efforts mirror similar reforms in other counties. For instance, Kiambu County recently repealed land taxes and waived penalties for overdue commercial land rates. These measures, introduced under Governor Kimani Wamatangi, included redefining freehold land below 10 acres as non-rateable and reducing chargeable land rates from 0.25% to 0.15%. These regional reforms underscore a growing trend among counties to alleviate tax burdens while seeking alternative revenue streams​.

Impact on Traders and Residents

The reforms have been lauded by the local business community, which sees them as a lifeline during tough economic times. According to the Makueni County government, over 27,000 business owners are expected to benefit from these changes. Traders at the Emali market expressed optimism, citing reduced operational costs as a crucial factor in improving their livelihoods​.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

29th November, 2024