Mombasa county government have launched a rigorous program to map premises and sensitize business community on importance of licensing their businesses and paying levies to raise revenue for development projects.
Through a 60 day Rapid Results Initiative (RRI) by the Finance Department and Sub County Administration, ward administrators and Sub County revenue officers are moving door to door in Nyali, Kisauni, Changamwe, Mvita, Likoni and Jomvu Sub Counties verifying business permits, checking health certificates and other documentation and educating business owners on the revenue payment.
Those found operating without permits and in contradiction to the required laws by the revenue teams are then urged to do so within this month to avoid arrests in the last 30 days of the RRI, which will be used for enforcement.
Speaking during an interview regarding the exercise in her office on Monday, Finance Executive Hazel Koitaba said the County has been losing a lot of revenue due to unlicensed businesses, unpaid levies, corrupt officers and masquerading revenue officers among other circumstances.
“Some people have been operating businesses without permits or operating multiple businesses contrary to the permit they applied for therefore resulting to huge losses in revenue to the County.
Businessmen need to understand that it is important they pay this revenue which in turn enables us to finance our developments and services in the county,” Ms Koitaba said.
She noted that the aim of the RRI exercise is not to intimidate business owners but sensitize and give them time to comply with required payments.
Businessmen who have been visited by the revenue teams at the various sub counties expressed positive or mixed views regarding the RRI exercise.
“I am happy that the County government has embraced a new approach of revenue collection from businessmen which is not direct enforcement but first sensitization.
Their officers are also not harassing us during the exercise or asking us for bribes to run our businesses but are instead are giving us time to comply ,” said Brian Oluga who runs a clearing and forwarding company at Ambalal Building but had not yet renewed his permit.
“I did not know that I needed a permit to operate a gym as it seemed as an exercising activity that I was offering people and not a business,” said Katana Juma who was found operating a gym without a permit in Kisauni.
Juma said that he will however ensure that he pays for a business permit following the information he got from the revenue teams who visited him.
“Most of the people I have been finding at the business premises during the RRI in my ward are staff while the owners have kept off just watching us from a distance,”said Likoni Ward Administrator Samuel Ochieng.
He added that he also found majority could not produce the business permits when asked during the exercise.
Ms Koitaba said that the exercise which has been running for a week, has revealed a number of businesses have been operating without permits, others have fake permits or have not been renewed for years.
She added that the reports also state some officers have been asking businessmen for bribes in order to be allowed to operate their businesses without permits or levies.
“We target to raise Sh5.5 billion this financial year and I urge business owners to comply with required regulations in order to run their businesses or prevent their licenses from being revoked,” she added.
The RRI exercise by the Finance Department is also running concurrent with businesses clinics by the Department of Trade, Investment, Energy and Industry where business owners are also being sensitized on the enhanced electronic single business permit system that is set to be launched in the County at the end of this month.
The additional features of the new system include the incorporation of fire permit, outdoor permit and liquor permit.
