Diani hotels seek harmonisation of taxes and licences
Kwale Bar Owners Association Chairperson Richard Onsongo during an interview in Diani.
Business operators in the hospitality sector in Kwale County want the government to consolidate the payment of taxes and fees for permits.
Seeking licences from several departments not only hurts businesses but also eats up their profits, said Richard Onsongo, chairperson of Kwale Bar and Restaurant Owners Association.
“There are many taxes to be paid and this affects the operation of our businesses. We have the Tourism Fund, Tourism Regulation Authority (TRA), Kenya Revenue Authority (KRA), Music Copyright Society of Kenya (MCSK) and there are also the police,” he told the Nation.
“This is besides the annual business permit that we are supposed to get from the county government.”
He added that the process of acquiring and paying for permits is long and costly and it reduces their profits.
Mr Onsongo, who is also the Kwale County Liquor Licensing Board Director, proposed a single collection point to ease payments.
Diani Reef Beach Resort Managing Director Bobby Kamani said licensing is a major stumbling block in the hospitality industry.
Mr Kamani, who is also the Kenya Tourism Board (KTB) director, added that the many permits needed to run a business were hurting investors, with the majority keeping away from such ventures.
He said hotels need at least 23 different licences to operate yet the permits can be easily consolidated.
For his part, Kenya Coast Tourism Association chief executive Julius Owino said the government should instead cut the number of licences to reduce the cost of doing business and boost tourism.
Apart from paying taxes, these establishments are also required to pay business registration, building and fire safety permits, among others. Some are also duplicated at the county and national levels.
The businesses need the permits to operate.
The hospitality and entertainment industries were among those that received a major blow during the Covid-10 pandemic, which prompted movement restrictions and curfews.
Bars were also required to close at night, when they are usually most active.
The 1.5-metre social distance rule meant restaurants had fewer customers, a situation that resulted in most establishments closing down.
But the situation has improved as most of the restrictions have been lifted and businesses are back in operation.
