Residents of Nyeri County are too reluctant to pay taxes, the Senate County Public Accounts Committee (CPAC) heard on Wednesday.
Nyeri governor Mutahi Kahiga, who had appeared before the committee to respond to audit queries for the 2019/2020 Financial Year, said part of the reason the county’s revenue generation is below par is that residents do not want to pay taxes.
“If you push them too much, that will be the last time you will be governor in that county. It is a political bomb and we have been forced to strike a balance.”
“Also, the closer you get to elections, the harder it becomes to collect taxes from the people.”
The governor told the committee that demanding that residents pay money could be political suicide especially if one is serving the first term.
During the period under review, the county’s own generated revenue stood at Sh656,628,153.
The governor noted that the county had targeted to collect about Sh1 billion but failed.
“This financial year, we are hoping to raise Sh700 million,” he stated.
Committee chair Moses Kajwang’ noted that a report by the Commission on Revenue Allocation had indicated that Nyeri County had the potential of collecting Sh4.6 billion while the Controller of Budget put the figure at Sh2.6 billion.
“CRA and CoB have said you have the potential of collecting billions but you are targeting to collect just Sh700 million,” Kajwang’ added.
The governor said he had put in place measures to increase collection but failed miserably.
“I have not been able to collect even Sh1 billion the four years I have been governor. What makes me think I can raise Sh2.6 billion or Sh4.6 billion,” he stated.
Nyandarua senator John Methu said it was regrettable that counties collect way below their targets.
“Counties raise the bar yet they know they are not doing anything different to increase Own Source Revenue,” he explained.
Kahiga further said statements by top officials of the national government that counties have been allocated huge amounts by the National Treasury hampers their efforts to collect more revenue.
“When they say they have given counties money, it kills Own Source Revenue. People become unwilling to pay taxes,” he explained.
He added that is also sometimes impractical to demand taxes from people to who you are giving relief food or aid.
“When we distribute food, how then do we tell them to pay land rates,” he posed.
President William Ruto on Sunday maintained that all Kenyans must pay taxes, remarks that echoed sentiments made by former First Lady Mama Ngina Kenyatta a day earlier.
While addressing the faithful at Deliverance Church International in Ruai, Nairobi, Ruto said all Kenyans are now in agreement that there should be no waiver for taxes for anybody.
“I'm happy that as a country, we have built a consensus that irrespective of your status, region or religion there will be no tax waiver for anybody,” he stated.
