Mombasa in hard juggling act over high wage, pending bills
Mombasa Governor Abdulswamad Nassir makes his inaugural address before the County Assembly on October 24, 2022.
Mombasa County is grappling with a large wage bill that is likely to hinder development, but the county administration is trying to cut such spending.
Governor Abdulswamad Nassir on Monday described the situation as a “quagmire that needs innovative solutions to deal with”.
The county has Sh4.2 billion in pending bills inherited from former governor Hassan Joho’s administration.
“We have close to no fiscal space to implement the promises we made to the people. The only way out is through improved own-source revenue and to achieve this, we must have the Mombasa Revenue Service as a county institution in place,” Mr Nassir said.
“We have taken critical steps to jumpstart our county finances. I began by reorganising and revitalising revenue collection in Mombasa County.”
He spoke during his first address to members of the county assembly (MCAs).
Mr Nassir said voters have high expectations
“The narrative of teething problems as an excuse for below-par performance will not be tolerated by the voter. We must get it right,” he added.
On improving the county’s financial performance, the governor is looking into tabling the Revenue Service Bill.
The bill, he said, will help facilitate transparency in revenue mobilisation, collection and receipt, enhance revenues, optimise existing revenue streams and identify new streams of revenue.
“Kenyans are already struggling under the burden of heavy taxation. We intend to widen the tax base by making it easier and more affordable for more residents to comply than by adding heavier burdens to those already complying,” he said.
The governor also promised to bring down the cost of licensing for public service vehicles and tuktuks, noting the application process is now digital and more transparent without human interaction that may result in corrupt practices.
Under the Finance Bill 2022/23 yet to be presented in the assembly for debate, Mr Nassir exuded confidence it would improve the business environment and tax regime in Mombasa.
“We will become the most business-friendly county and startups will flock to us because of our new proposed policies to zone levies in Mombasa,” he stated.
Property developers also have a reason to smile after the governor expedited old applications, noting that building approvals are now transparent and are issued on a timely basis.
He urged developers to employ local youth in their projects.
“I shall be moving the Mombasa County Sectional Properties Bill to this honourable House for approval,” he said.
"The purpose of this Act, once passed, shall be to control, manage, and administer common property and do all things reasonably necessary for the enforcement of the county laws, and to do all things reasonably necessary for the enforcement of any lease or license under which the land is held.”
Other proposals are the Transport Bill and the County Climate Change Fund Bill.
Under the Transport Bill, the county seeks to promote more usage of non-motorised transport as a way to reduce air pollution.
The bill also aims to reduce congestion in some parts of Mombasa.
Mr Nassir promised to facilitate better access to financial resources and mobilise resources for smooth operations at the main hospital. He noted this will be realised through the Coast General Teaching and Referral Hospital Corporation Bill.
Meanwhile, Mr Nassir has instructed the office of the county attorney to look into a legal framework that will help in setting up a County Ward Development Fund.
"Devolution was meant to bring development to the lowest administrative unit, which is the ward. However, this noble intention has been scuttled by court action to the Supreme Court,” Mr Nassir said.
"However, we will not be deterred and I want to assure this honourable House that we are working to find a legal and appropriate way of making the Ward Development Fund a reality to our people."
The move was welcomed by the MCAs.
