City Council hires youth to reign in tax evaders


Published on 03/11/2009

By Ally Jamah

A new drive by the Nairobi City Council (NCC) to boost its tax revenues has put unlicensed traders on the spot.

The cash-strapped Council yesterday hired 1,000 youth to scour city estates and register thousands of unlicensed businesses in a bid to shore up its faltering finances.

"We know that the majority of traders in Nairobi are not paying taxes. But, we will make sure they pay to enable the council deliver crucial services," said Mr Musalia Mudavadi, the deputy Prime Minister and Minister for Local Government.

He spoke yesterday while launching the drive at City Hall Nairobi.

Tax Books Target

The youth, recruited from all the wards in the city, are working under the Kazi Kwa Vijana programme and are funded by the Co-operative Bank to the tune of Sh500,000.

Nairobi Mayor Geoffrey Majiwa urged the youth to work aggressively and bring in at least half a million new traders into the tax books.

"Our council can collect Sh20 billion every year if everyone paid their taxes as required. But the majority of Nairobi residents are using all means to escape. We will not allow them to do so," he said.

The Mayor added: "We expect resistance from the unlicensed traders. They will try to defeat our efforts, but we will make sure everyone pays to enable us do our job."

Meanwhile, the Town Clerk Phillip Kisia said NCC has only managed to net 113,000— or a quarter —of single-permit businesses in its tax books with the rest getting off the hook.

Mudavadi warned the hired youths not to accept "free lunches" from businesspersons to evade registration.

He also urged the unregistered businessmen to cooperate with the council for the good of the city.

In the past, Nairobi businessmen have complained that most of the taxes they pay end up in the pockets of corrupt officials, leaving the city’s business infrastructure in shambles.

Majiwa echoed the sentiments saying much of the councils’ revenue was being siphoned off by corrupt workers depriving it cash for essential services.

Mudavadi also urged NCC to fully automate its operations.

 

 

Read all about: NCC tax revenues Kazi Kwa Vijana Nairobi Mayor Geoffrey Majiwa Town Clerk Phillip Kisia

 

 

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