Kakamega’s Finance Bill introduces new charges, targets emerging sectors to raise $17 million own-source revenue

Kakamega’s Finance Bill introduces new charges, targets emerging sectors to raise $17 million own-source revenue

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Kakamega County is targeting to raise Ksh2.2 billion ($16,9768,600) in own-source revenue in the 2026-2027 financial year through new and revised charges.

Currency conversion in this report is based current exchange rate at $1 = Ksh129.5.

Proposed revenue measures developed by the Department of Finance, Economic Planning and ICT, are expected to broaden the county’s revenue base that will seal collection loopholes and enhancing service delivery.

According to the proposed budget estimates, Kakamega County projects total revenue of approximately Ksh16.76 billion, comprising Ksh13.24 billion from the equitable share allocation from the national government, Ksh1.32 billion from conditional grants and development partners and 2.2 billion from locally generated revenue.

The proposed Finance Bill 2026, introduces new charges targeting emerging sectors such as AirBnB businesses, electric vehicle charging stations, hybrid vehicle bazaars and corporate branding activities.

During a public forum to gather views and address public concerns over newly proposed fees and levies, held at Kakamega Social Hall, the county has made key proposals that include introduction of a uniform Ksh10,000 penalty for fake permits and a Ksh1, 000 charge for reprinting licences or changing license particulars.

The Bill further proposes annual licensing fees for AirBnB operators ranging from Ksh3,500 to Ksh20,000, depending on the number of units operated locally, while electric vehicle (EV) and electric motorbike servicing and charging points will attract an annual license fee of Ksh10,500.

A new charge for large hostels of over 50 rooms will pay Ksh40,000, with large restaurants with a club membership of over 30 members will now pay Ksh100,000.

Following the discovery of gold deposits in Ikolomani constituency, the county will charge an annual fee of Ksh10,000 for gold mining and crushing, with foreign nationals running gold buying centres parting with Ksh50,000 per kiosk per year.

Those prospecting for gold will be charged Ksh10,000 per lorry (tipper) with foreigners expected to cough up Ksh50,000 per tipper, among other charges.

Other proposed charges include fees for demolition permits, construction publicity boards, ground rent for containers and structures on public land and a one-time registration fee of Ksh1,000 for tuk-tuk operators and motorcycle operators.

The proposals were discussed during public participation forums led by the County Assembly’s Finance and Economic Planning Committee chaired by Khalaba Ward Member of County Assembly (MCA) Boniface Lubanga Osanga.

Speaking during the forum, stakeholders urged the county government to ensure the proposed charges remain affordable while improving service delivery.

The Tuktuk Association Chairman Rajab Husein Arunga proposed a reduction in the annual tuktuk sticker fee from Ksh1,200 to Ksh800 to encourage compliance among operators.

Arunga noted that the current charges had contributed to a decline in sticker uptake, leading to reduced revenue collection by the county.

“Lowering the fee would encourage more operators to obtain the required stickers, ultimately increasing compliance and boosting county revenues,” he added.

The tuktuk operators also appealed to the county government to establish designated tuktuk stages across major urban centres to streamline operations and improve public transport services.

Residents also called for reforms in county revenue collection practices, urging the administration to ensure revenue enforcement officers commonly known as “kanjo” have official identification documents when on duty and handle clients with dignity.

John Makokha, a resident of Bunyala East further proposed the adoption of formal demand notices and payment bonds during tax enforcement instead of confiscating goods belonging to small-scale traders, especially Mama Mboga vendors.

The participants argued that seizure of traders’ merchandise disrupts livelihoods and strains relations between residents and the county government. In the health sector, residents called for the procurement and deployment of more ambulances at the sub-county level to improve emergency response and enhance access to healthcare services.

They said increasing the number of ambulances would reduce response times and ensure timely medical attention, particularly in remote areas.

County Assembly’s Finance and Economic Planning Committee Chair Boniface Osango who chaired the forum, said the county has in the past failed to meet its own-source revenue targets and that the proposed legislation seeks to widen the tax base, improve compliance and streamline local service delivery.

  • A Tell Media / KNA report / By George Kaiga, Cypron Esolio  and Erick Mutua
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