Nyandarua bar owners on receiving end for failing to pay taxes
Nyandarua Governor Kiarie Badilisha during a tour of Sende Moto estate in Engineer Town, Kinangop Constituency on September 9, 2024. He directed the immediate closure of all bars within the estate
What you need to know:
- Nyandarua County has more than 3,000 bars.
- On average, a bar licence costs Sh15,000.
Nyandarua County Government has lost more than Sh3 billion in uncollected revenue from bar owners in seven years.
Hawkers and other traders have protested against the exemption of bar owners and want them to be compelled to pay taxes.
“When providing services, the county government doesn’t discriminate where to collect garbage or connect piped water. Bars contribute to towns being dirty, especially in rural areas where the cost of collecting garbage is more expensive. If bar owners paid levies like other traders, the county would have enough money to keep our towns clean,” a trader who sells smokies in Engineer Town, John Njeru, said.
In Ol Kalou, Vincent Mugo, who runs a retail shop had similar feelings, saying that the county and national governments must be firm on bar owners.
“We can’t be paying levies while other traders rush to court to evade paying taxes. It is immoral to benefit from county services that have been paid for by others for seven years,” said the trader.
Nyandarua County has more than 3,000 bars. Former Governor Francis Kimemia had attempted to reduce the number, but bar owners moved to court to block the implementation of a draft law. The current Governor Kiarie Badilisha’s regime has also faced similar problems.
On average, a bar licence costs Sh15,000, but the amount does not include charges for inspection permits from the health department, medical certificates, and levies imposed depending on the location and size of a business, among other factors.
The unending court battles have frustrated the government's efforts to reduce the number of bars in the county, especially in the rural areas where liquor traders often break the law by operating beyond the stipulated hours as well as selling substandard alcoholic drinks.
When Mr Kimemia became governor in 2017, he suspended the issuance of bar licences until a new law was enacted. This happened in November 2020, but bar owners moved to court to challenge the implementation of the County Alcoholic Act 2020 and the appointment of an Alcohol and Drugs Management and Control Committee chaired by former Provincial Commissioner Joseph Kaguthi.
Bar owners’ representatives, Interior Ministry officials, county government and special groups were part of the committee. But full implementation of the law was frustrated when bar owners went to court.
Mr Kaguthi blamed the large number of drinking joints in Nyandarua on county and national government officials also being bar owners. He said some licences are issued corruptly, noting that in some rural markets, there are more bars than churches and other businesses combined.
By the time the new law and control committee was formed, the bars had operated for two years without paying a coin to the county government.
High penalties
“Recent amendments have made the new Act a more inclusive document in deliberation and implementation to ensure its effectiveness. Accordingly, the Act accommodates the County Commissioner and County Police Commander in the enforcement of laid-down measures and regulations. Provisions have also been made for high penalties against defaulters to check abuse, adulteration, and sale of illicit brews. For the first time, we have also strictly outlined how bars, wines, and spirits outlets shall operate, including hours of business,” said Governor Kimemia when signing the law.
On assuming office, Governor Kiarie Badilisha embarked on streamlining the industry but had a similar fate when the traders moved to court, effectively avoiding paying any taxes.
In giving the conservatory orders against the county government, the court directed the county to harmonise the alcoholic law, which was done about two months ago, ending the court battle, but the traders and back again, threatening to move to court to stop implementation of the new law.
Normally. The bar owners use the lack of public participation as an entry point in all court battles against the government.
Two weeks ago, the traders met in Engineer Town in Kinangop threatening to move to courts to stop the court from implementing the newly enacted law, but Governor Badilisha says enough is enough.
Alcohol Control Act
He says one of the greatest legislative and policy legacies of his administration is the enactment of the Alcohol Control Act, a legal framework that addresses alcoholic issues across all value chains and focuses on the root drivers and enablers of killer brews.
“The act was able to craft a multi-agency architecture that no longer allows for blame games between the county and national government, or even between agencies. The county government will enforce the law without fear or favour. Protecting legitimate businesses while at the same time doubling down on the crackdown on all illegal businesses. This intervention may in the short-term negatively affect our own source of revenue target. Still, the medium and long-term implication on the health and productivity of Nyandarua people will spur economic growth,” said the governor.
He adds that it is unrealistic for traders to continue using the courts to evade paying taxes, even after the county reverted to charges imposed in 2023.
“We can't have mama mboga, boda boda, vendors, and hawkers pay taxes but one class of traders playing monkey business with us, we respect all businesses, but the era of playing games has come to an end, let us all pay our taxes to grow our county and for effective and efficient services delivery, I will enforce the law,” said the governor.
