A two-week study conducted by The Coast Civil Society Network for Human Rights (CCSNH) on Own Source Revenue in Mvita Sub-County has recommended prioritisation of infrastructure improvement to increase compliance with trade licensing fees.
The study was conducted in December 2024 and aimed at enhancing licensing compliance and service delivery, during which 14,808 businesses were mapped with revelations that some 18,562 sub-businesses were riding on permits of the principal licensee.
The report highlighted glaring service delivery gaps like inadequate drainage systems and flooding, poor road maintenance, irregular waste collection services forcing businesses to hire private waste management companies and inadequate street lighting.
Muslims for Human Rights (MUHURI) Executive Director Walid Kassim said 40 per cent of businesses in Tononoka and Ganjoni wards reported security issues due to inadequate street lighting, affecting their ability to operate safely at night.
The study also reveals mistrust in licensing and enforcement; for instance, 50 per cent of businesses had experienced or had cases of Enforcement Officers demanding bribes to avoid enforcement.
The County Government of Mombasa was advised to leverage technology to streamline business licensing, ensure transparency in licensing fee structure, and combat corruption and harassment.
It also recommended the engagement of business owners in decision-making processes, particularly in tariff setting and allocation of resources.
“Consultative forums and stakeholder engagement platforms should be established to improve communication between businesses and the County Government. A quarterly feedback forum should be organised for business owners to voice their concerns to County Officials,” said Kassim.
To alleviate operational challenges businesses face in Majengo, Old Town and Tudor, the County Government was urged to upgrade drainage systems and improve waste collection and maintenance of roads.
The study proposed lowering initial licensing fees for businesses in underserved areas to encourage the formalisation of informal businesses.
“We call for proper accountability and action in the trading environment within Mombasa County,” stated Kassim.
CSCNH Chairman Zedekiah Adika noted that the County is doing well in revenue collection from businesses and should consider lowering Single Business Licensing fees for more businesses to join the revenue bracket.
Trade licensing fees in Mvita Sub-County are estimated to be Sh276 million, with small businesses driving the revenue capacity. Majengo ward is the leading.
“The Sub-County contributes 45 per cent of the total estimated revenue potential of Sh600 million for the entire county,” said Adika.
He further advised Coast Governors to leverage natural resources to increase their revenue streams.
The County Assemblies were urged to open their doors to the public to give views that will inform the formulation of policies and enactment of legislation. Adika emphasized that they want a reflection of revenues collected in service delivery.
By Sadik Hassan
