[b]Private sector rejects new charges for branded vehicles[/b]
By Caroline Mango
Mombasa Municipal Council has introduced a mandatory annual licence fee of Sh8,000 for all branded vehicles belonging to private companies that operate in the town.
The move has caused uproar in the business community and a standoff between the private sector and council is anticipated. Branded vehicles that come to Mombasa regularly from Nairobi and other parts of the country, Uganda, Tanzania, Rwanda, Democratic Republic of Congo, Sudan will pay the same amount.
The council has written to 100 companies in Mombasa. The by-law, which is contained in a gazette notice of July 7, states that any vehicle that displays its identity, partly or wholly, regardless of the size will pay Sh8,000.
Mombasa Town Clerk, Mr Roba Duba, told Saturday Standard yesterday that the laws are effective and that the council has entered all vital data on private companies in Mombasa and those that send vehicles to the town frequently.
Duba said the move would increase the council’s revenue. He says the by-law has existed for a long time but it had not been implemented. Already companies operating large fleets of vehicles have protested. They said the charges would hurt their businesses and scare investors.
In the letter, the council says vehicles belonging to companies that fail to pay up would be towed. The council would also take legal action against them in accordance to the Physical Planning Act Cap 286.
Siginon Freight managing director, Mr Meshack Kipturgo, said although the company was yet to receive the letter, the by-law is definitely unfair to the business community.
His company has a fleet of 78 trucks operating in Mombasa. According to the by-law it will be required to pay Sh624,000 by December. A company like Coca Cola Bottlers will have to pay even more as it operates over 200 vehicles in and outside Mombasa.
Kipturgo said it is unfair for the council to continue ‘punching’ the business community yet it is offering unsatisfactory services.
"We have spent Sh30 million to put up fire fighting facilities within our premises because the council’s water hydrants are dry.
The council does not offer business people a conducive environment and yet they want more money from us," he said.
Kipturgo said the council would be more successful if it called the business community to a meeting to discuss how they can work together to solve the problems facing the town.
Standard Group Assistant Director in charge of Distribution and Sales, Mr Sam Mutetei, confirmed that he had received a letter demanding that the company pays for its branded vehicles that operate in Mombasa. He said the private sector was already paying a lot of money to operate in the town.
