Boda boda operators denying Meru millions in revenue
Meru County loses millions of shillings in revenue because thousands of boda boda riders do not pay levies.
A report from a county assembly committee on the status of parking slots in Meru town shows that boda boda operators do not pay parking fees despite the law requiring them to pay Sh20 per day or Sh300 monthly.
Meru municipality board manager Mbaabu Muguna told the Nation that about 4,000 boda boda riders operate from more than 20 parking bays.
This means the county loses about Sh80,000 daily in uncollected revenue from motorcycle taxi operators in the Meru municipality alone.
The 2019 census showed that about 9.8 percent of Meru households owned a motorcycle, translating to more than 40,000 bikes. About 30,000 boda boda riders operate in the entire county.
At a daily rate of Sh20, the county should be collecting Sh600,000 daily or Sh18 million per month from boda boda operators alone. But the report says that not even a penny is collected from them.
The report from the Finance and ICT Committee says revenue from 1,299 parking slots in Meru town has fallen from Sh80 million in 2018/19 to Sh73 million in 2019/2020 and Sh61 million in 2020/2021.
“There is no policy in place to regulate the motorcycle industry. Currently, they don’t pay parking fees despite there being a provision for that in Meru County Finance Act 2019…” the report says.
The report was a response to concerns raised by MCAs on the number of parking slots in Meru town and the revenue generated.
Committee chairman Dennis Kiogora said county revenue board officials cited the chaotic nature of the boda boda industry for their inability to collect levies from riders.
“Because of political reasons, the sector has been left to operate in town and across the county without following any rules and regulations,” the report states.
This means Meru County is losing millions of shillings in revenue from thousands of riders.
The committee observed that because the boda boda sector is unregulated, riders occupy parking slots meant for car owners.
“The concerned department should liaise with other relevant bodies at the national level to develop clear policies and regulations to streamline the operations of boda bodas in the county,” Mr Kiogora said.
The Meru County Revenue Board also cited a lean workforce, vandalism of manhole covers for scrap metal, hawking on parking spaces, and unmarked parking slots as some of the challenges leading to loss of revenue.
Kiogora, who is also Abogeta West MCA, said the board had lost 34 workers due to retirements in 2020 and 2021.
Revenue board CEO John Ntoiti credited the high collections in 2018/2019 to the use of the Meru Youth Service as revenue officers. BY DAILY NATION
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