The Uasin Gishu county government has increased land rates in Eldoret town by more than 600 per cent causing an outcry from landowners and traders.
The county has released a new valuation roll and revised land rates and residents will pay highly for plots once the charges are gazetted.
Governor Jackson Mandago is under pressure to drop the new charges which landowners, farmers, and traders say are punitive and unaffordable.
The county carried out a valuation of land in the town leading to the increased rates.
A half an acre plot in Kimumu area has been attracting land rates at Sh3,400 per year but landowners will now pay Sh24,000.
The land was valued at about Sh2.4 million during the current exercise and attracts one per cent charge in land rates.
In Pioneer area where landowners paid Sh4,000 annually for a quarter an acre, they will now pay Sh90,000.
The same average increment of about 600 per cent will be applicable in all parts of the town.
“These charges are so high and the ripple effect will be damaging to everyone and the entire economy in the region. We have to discuss with the county on the way forward,” traders' spokesman Kipkorir Menjo said.
Menjo and a representative of the Kenya National Chamber of Commerce and Industry Obedi Kiptala said farmers and traders were already suffering and increased rates would worsen the situation.
“It’s like you get a drowning person in a swimming pool and instead of saving the victim you add more water,” Menjo said.
Traders have sent a petition to Mandago over the new rates but he is yet to respond.
Meanwhile, the Kenya Revenue Authority should find alternative ways of dealing with local investors accused of evading taxes, Mandago has said.
Mandago took issue with the manner in which the government was handling the local companies accused of failing to pay their taxes to KRA terming the move counterproductive.
The governor said that it was wrong for the government to shut down local companies in connection with tax evasion.
He spoke while commissioning the Jijenge Quarry at Yamumbi area in Kapseret constituency on Saturday
“KRA and the government should come up with solutions on the tax row so that defaulting companies are asked to pay instead of shutting them down causing job loses and other negative effects to the economy,” Mandago said.
Mandago said investors would fear starting projects in the country because of harassment by KRA.
Mandago, however, wants the local companies and individuals to clear all their outstanding taxes to enable the national and county governments to offer services to the citizens.
He said both the national and county government can only operate if all Kenyans pay taxes due to KRA.
(edited by O. Owino)
