Siaya governor, James Orengo, on Monday, May 15, suspended tax collection in the Usenge area after an uproar from traders over harassment by authorities.
In a meeting with representatives from the business community, the governor stated that all traders, including hawkers, small-scale vendors, and other businesses, would not pay tax for the following week.
Orengo noted that it would give the county leadership time to re-strategise and hire new revenue collectors.
Further, he noted that vulnerable business community members had lost faith in the county's leadership, citing harassment by revenue collectors.
The traders welcomed the suspension set to take effect from Tuesday, May 16, 2023.
“From tomorrow morning, I want the authorities collecting tax removed. Not only is this directive intended to protect vulnerable members of our business community, but it is also intended to allow my administrations to re-strategize and bring in new revenue collectors,” Orengo stated.
Additionally, the governor ordered all items confiscated from the traders during tax collection to be returned immediately.
“I want all the items seized from traders in Usenge to be returned immediately," Orengo ordered.
Further, the governor noted plans to build a bus park at the market to ease mobility were underway.
He encouraged traders to form personal development groups to access loans from the government to grow their businesses.
"I also walk here and see how our people are struggling with transportation because there is no bus park in this area," he noted.
The tax debate has been a contentious issue since President William Ruto assumed power in September 2023. With counties facing a shortage of funds occasioned by delays caused by the national government, governors resorted to raising revenues on their own.
However, with proposals to increase taxes to raise money for the 2023/24 budget, Ruto was accused of double taxation. On Sunday, May 14, he, however, defended his government against the claims.
Further, Cabinet Administrative Secretary (CAS) to the Office of Prime Cabinet Secretary, Isaac Mwaura on Monday, May 15, faulted small business holders for failing to aid the government in raising revenue.
"We have about 16 million Kenyans who are working in the informal sector and only 6 million of them keep proper records that can be used for taxation purposes,” he stated.
