Kakamega Governor Wycliffe Oparanya has introduced taxes for lodging facilities within his county in his proposed county Finance Bill 2018.
Should the bill be passed, lodging facilities with over 50 rooms will be required to remit Ksh40,000 annually in the rural areas and Ksh85,000 in urban centres.
Facilities with less than 50 rooms will pay an annual tax of Ksh12,750 to conduct business in the county.
Hoteliers have come out protesting the new tax arguing that it will discourage investors from pitching camp in the county.
"We have only two big hotels in the county and visitors have to look for accommodation in Kisumu, leading to loss of revenue.
"The county should consider reducing levies payable by hotels," advised William Ouya, the chairman of the county's hoteliers group.
Governor Oparanya proposed the new taxes in a bid to seal any loopholes in the collection of revenue in the county.
In addition to the tax for lodging facilities, the governor also proposed that general traders, wholesale and retail store owners and other merchants with between three and five employees will remit Ksh12,000 every year.
Petrol stations with at least six fuel pumps, a workshop and a garage will part with an annual levy of Ksh30,000 in the new proposal.
Tuk tuk operators will be taxed Ksh40 each day while car and lorry owners will part with up to Ksh3,500 and Ksh10,000 in parking fees respectively for urban areas and Ksh6,000 for the lorries in rural areas.
Hawkers will be issued with a single business permit at Ksh1,600 in rural areas and Ksh3,400 in urban areas annually. A Ksh500 application fee will be charged to owners of branded kiosks and market stalls.
