By Billy Mijungu

There is a silent crisis unravelling across Kenya’s business landscape. A slow, grinding pain that starts with a letter unseen, a flag raised quietly, and a PIN suddenly suspended. The Kenya Revenue Authority, in its zeal to enforce compliance, has created a mechanism known as the VAT Special Table, a little-known procedural trap with devastating consequences for businesses, many of which are innocent of wrongdoing.

This mechanism, meant to target tax irregularities, has instead become a sentence served before trial. A quiet death of enterprise. A reverse trial in motion.

When KRA places a taxpayer or their supplier on this so-called VAT Special Table, the system does not just freeze. It cripples. Your Personal Identification Number is suspended without warning, your business activities come to a halt, and your clients who may have genuinely transacted with you find themselves unable to claim input VAT.

The digital system rejects your PIN. They cannot file VAT returns using your details. They bear a cost they should not, and you, the seller, begin to bleed clients, reputation, and revenue.

In this Kafkaesque setup, the system presumes guilt without investigation. A trader who has built goodwill, fulfilled orders, issued tax invoices, and remained compliant is instantly labelled a suspect. Yet the crime remains undefined. No audit. No hearing. No warning. Just silence and exclusion.

Consider the dire financial impact. A business records output VAT of 130,000 shillings and input VAT of 100,000. Under normal circumstances, the business would pay the difference, 30,000. But imagine two of the suppliers who contributed 40,000 to that input VAT are placed on the VAT Special Table. Without that 40,000 being claimable, the business can now only offset 60,000, meaning they are forced to pay 70,000 in VAT. Not because of fraud. Not because of dishonesty. But because the system has blocked their input. Legitimate tax credit denied. Cash flow is shredded.

In a world where liquidity means survival, this burden is enough to break even the strongest enterprises.

Businesses are no longer growing organically. They are being forced into survival mode, constantly pushing themselves into a pay position, even when their books are clean and their operations are above board. They are no longer expanding through innovation or customer satisfaction. They are simply paying to stay alive. It is no longer about building value, it is about staying out of the VAT Special Table.

This is not a hypothetical scenario. This is the reality that many businesses are confronting today. With a circulating list of over 5,000 companies now on the VAT Special Table, the impact is not isolated. It is systemic. Businesses are interconnected. The exclusion of one player echoes across entire supply chains. Large tax contributors now find themselves entangled with blacklisted suppliers. And just like that, the web unravels. Sales drop. Clients walk away. Entire business models collapse.

All this unfolds in silence, shrouded by fear. Traders are unwilling to raise their voices. They dread triggering comprehensive audits where even the smallest human error could be penalised heavily. This fear has fueled corruption, empowering rogue officers to extort struggling entrepreneurs with promises of removal from the VAT Special Table. A new economy of bribery blooms, ironically born from a system meant to fight tax evasion.

The injustice is staggering. A trader can be made to suffer, to lose clients, lose credit, lose cash flow, and face potential collapse, all before any audit or investigation is conducted. There is no presumption of innocence. No platform to be heard. No room to rectify. It is imprisonment before trial. It is punishment before the process. It is, in every way, a violation of the rights enshrined in the Constitution and a betrayal of the Tax Procedures Act.

This is not merely a tax enforcement issue. It is a national economic risk. Every unjust suspension, every wrongly flagged PIN, adds another grain to the avalanche of business closures. KRA must stop. It must audit before it punishes. It must investigate before it accuses. It must restore trust in the system. Because what we are witnessing now is not just the erosion of tax compliance. It is the erosion of the very spirit of enterprise in Kenya.

Let justice guide our taxation. Let fairness precede enforcement. And let no taxpayer ever be sentenced before trial again.

By Dr. Edris Omondi (Advocate)

attorneyedris@ywcg.org

(Strategic Thinker, Author, Motivational Speaker, Preacher and a Lawyer)

Kenya’s devolved system of governance has long struggled with inconsistencies in property valuation and taxation, leading to revenue collection inefficiencies. The National Rating Act 2024, which repeals the outdated ‘Rating Act’ and ‘Valuation for Rating Act’, seeks to standardise property valuation and taxation across all 47 counties. However, its implementation won’t be without legal battles, financial losses for counties that had already developed their own valuation laws, and debates over its constitutionality.  

This article provides a comprehensive analysis of the new law, its implications, and the challenges the 47 counties are likely to face in complying with it.  

Why the National Rating Act 2024?  

Previously, counties operated under the Rating Act (Cap 267) and the Valuation for Rating Act (Cap 266), which were relics of the defunct local government system. These laws were ill-suited for devolution, leading to:

1. Inconsistent valuation methods – Counties used different criteria, causing unfair taxation.  
2. Weak enforcement – Many property owners defaulted without consequences.  
3. Revenue leak – Poor systems allowed evasion, depriving counties of crucial funds.  

The National Rating Act 2024 was introduced to:

1. Harmonise property valuation– Ensuring uniformity across counties.  
2. Strengthen enforcement – Allowing auctioning of properties for unpaid rates.  
3. Enhance transparency – Reducing corruption in valuation processes.  

Key Provisions of the National Rating Act 2024 

1. Repeal of Old Laws – Nullifies all county-specific rating laws, forcing counties to adopt the national framework.  
2. Standardised Valuation – Establishes a uniform method for assessing property values.  
3. Strict Enforcement – Defaulters risk property auctions if they fail to pay rates.  
4. County Compliance– Requires counties to align their systems with the new law.  

Constitutionality of the National Rating Act 2024

The law has sparked debate over whether it infringes on ‘county autonomy’ under Article 209(3) of the Constitution, which grants counties the power to impose property rates.

Critics argue: 

❌ Overreach by National Government – The Act centralises what should be a devolved function.  

❌ Wasted Investments – Several Counties spent millions developing their own valuation laws, now rendered obsolete.  

Proponents counter that:  

✅ Uniformity is necessary – Disparities in rates discouraged investment and created confusion.  

✅ Stronger revenue collection– A standardized system reduces loopholes and increases county incomes.  

Ideally, sooner or later, the courts may ultimately decide whether the law respects devolution or undermines it.  

Pros of the National Rating Act 2024 

✔ Fairness – Prevents arbitrary valuations that favour politically connected individuals.  

✔ Increased Revenue – Stronger enforcement means more funds for county services.  

✔ Investor Confidence – Predictable taxation attracts real estate development.  

Cons and Challenges

❌ Legal Battles – Counties are likely to challenge the law in court.  

❌ Financial Losses – Millions spent on county-specific valuation laws are now wasted.  

❌ Implementation Delays– Transitioning to the new system may take years, slowing revenue collection.  

The Way Forward

1. Court Clarification– The judiciary should determine whether the law respects devolution.  

2. County Engagement – The national government should consult counties before full implementation.  

3. Phased Transition – Allow counties time to adapt without losing revenue.  

Conclusion: The National Rating Act 2024 is a bold step toward streamlining property taxation in Kenya. However, its top-down approach risks alienating counties that have already invested in their own systems. For the law to succeed, the national government must balance standardization with respect for devolution, or risk prolonged legal battles and

By Team

Attempts by a section of MPs from Nyanza, led by Orange Democratic Movement (ODM) chairperson Gladys Wanga, to have the son of the murdered Kasipul MP Charles Ongondo Were issued with a direct ticket is creating a split in the party’s top leadership.

Wanga, who is the Homa Bay Governor, and other leaders over the weekend presented Mr Boyd Were at a local church and asked residents to support his candidature to inherit his father’s seat.

Wanga, Homa Bay Town MP Opondo Kaluma, Senator Moses Kajwang, Minority Whip Millie Odhiambo, and Roza Buyu (Kisumu West) said the late Were’s son was the best-suited family member to replace his father as Kasipul Member of Parliament.

The team promised to support Boyd, who swore to stand strong with the people of Kasipul during his late father’s burial, in his quest to become the next constituency MP.

But the party’s top leadership hierarchy is uncomfortable with the move and wants a free and fair nomination conducted to avoid any fallout within the party.

Sources told Western Insight that the party was not convinced of Ongondo’s son’s capability to win the seat should he be given the direct party ticket.

“Kasipul Constituency is volatile and the party is not ready to take any risk. I do not see Were’s son getting endorsement from the party leadership. ODM wants to contain any internal rebellion, and that is why once the election is called, they will prefer a nomination to awarding a direct ticket,” said our sources.

Following the recent death of Were, a number of leaders have already begun drumming up support for the late MP’s son, Boyd Were.

According to the ODM brigade from Homa Bay and other parts of the county, Boyd is seen as the best person to inherit his late father’s seat.

Before his death, Were was facing a herculean task from his main challengers: Mr Newton Kefa Ogada, Philip Aroko, Money Mabior, Okindo Majiwa, Ajoh Mbuta, Omondi Swaleh, and Rateng Kotiende.

According to Wanga, Homa Bay is an ODM zone and they expect no other party to field a candidate when the by-election comes.

“As the Governor of Homa Bay and the ODM Chairperson, we support the Broad-Based Government since that is what we promised our party leader and President William Ruto.”

“However, we must know that Homa Bay and the entire region is an ODM zone, and we will defend, protect, and stay strong for the party.

“As we plan to go for by-elections in Kasipul, Ugunja constituencies, and other parts of the country, clearly we do not want to be in competition with our allies. We want cooperation and for ODM seats to remain as ODM seats,” she said during the burial ceremony.

The Kenyan Constitution stipulates that the Speaker of the National Assembly declares a parliamentary seat vacant within 21 days of the occurrence of a vacancy. The Speaker then notifies the Independent Electoral and Boundaries Commission (IEBC), which, under the Constitution, triggers a by-election to fill the vacant seat.

ODM Past Trends

According to past ODM trends, whenever a family loses one of their own elected leaders, in most cases one of the close relatives is usually rewarded with a direct ticket, despite having to mount a major campaign against opponents vying on other political party tickets.

When the late Senator Gerald Otieno Kajwang died in November 2014, his brother Moses Otieno Kajwang was given the direct ticket.

The same trend was witnessed when the late Kibra MP Ken Okoth died in 2019 and his brother Imran Okoth was given the party ticket.

A similar scenario was also witnessed in Homa Bay when the late Kibiri Ward MCA Boaz Odhiambo was murdered and his brother, now a former MCA, Kennedy Ondiek, was given the direct ticket.

However, this trend was not realised when the late Ndhiwa MP Orwa Ojode died in a plane crash, as the party settled on former MP Agostinho Neto instead.

By Anderson Ojwang

Will the leasing of the four public sugar factories to private investors inject a robust life into the sugar sector and address the delay in payment for cane delivered by farmers to the factories?

Will the private investors be able to meet the country’s sugar requirement of 1 million tons annually, and will the employees be paid promptly?

And more importantly, an emotive issue that is fast emerging is over the ownership of the nucleus land, factory assets and what role the community will play in the day-to-day management of the factories?

These are some of the tough questions that have emerged after the government concluded the leasing of the four factories to private investors.

Sugarcane farmers, have for decades gone through untold suffering due to unpaid cane deliveries, high cost of production and huge loans that have crippled the sector.

The factories have been reeling from heavy debts, unfavourable business environment, cane shortage and the underhanded deals by the sugar cartels, coupled with greed by sugar importers.

The sugar sector is capable of generating Sh 106 billion annually, which can create at least 500,000 employment opportunities in the country but this has not been achieved.

Currently, according to reports, Kenya produces approximately 800,000 tons of sugar annually. However, the country still faces a deficit as the demand for sugar is around 1 million tons per year.

Similarly, according to recent data, Kenya imports around 320,000 metric tons of sugar annually, with figures fluctuating depending on the year and domestic production levels; in 2022, Kenya imported approximately 320,700 metric tons of sugar.

Over the weekend, the takeover was actualised with West Kenya Sugar Company taking over Nzoia Sugar Company, while Kibos Sugar and Allied Industries Ltd took over Chemelil Sugar Company.

Sony Sugar Company was leased to Busia Sugar Industry, and West Valley Sugar Company Ltd took over Muhoroni Sugar Company.

Agriculture Cabinet Secretary Mutahi Kagwe in an attempt to respond to the emerging issues in a statement said the Ministry has assured the public that no public land would be sold or acquired under the leasing agreements. Further, all assets belonging to the four sugar companies would remain the government’s property.

“I would like to assure the public and all stakeholders that the negotiated terms represent the best possible outcome to ensure the revival of the sugar sector. I call upon your continued support in realising this vision. The Ministry remains fully committed and ready to address any concerns that may arise,” Kagwe remarked.

The CS said the government competitively procured four private millers to run the factories for 30 years.

“The move was necessary to inject much-needed capital into the sector and to ensure efficient operation of the factories to make the country’s sugar secure,” he said.

The government had in the recent past paid over Ksh. 1.7 billion to sugarcane farmers and Sh. 600 million to factory workers in the past year.

But still, the arrears owed to factory workers have accrued to Ksh. 5.6 billion, funds which the government has promised to settle by June 2026.

This will be done in a phased payment schedule, which includes Ksh. 1 billion to be paid to workers upon takeover in May 2025, Ksh. 1.5 billion to be released in July 2025, and Ksh. 1.17 billion to be released quarterly until June 2026.

The CS added that there would be a one-year transition period during which the private sector shall evaluate its workforce and determine how to retain current employees.

But Kisumu Governor Prof Anyang Nyong’o has called for the suspension of the exercise, saying there was no public participation and approval by the people of Kisumu county.

“We are concerned about the Miwani nucleus sugar land, which is being transferred through opaque arrangements despite the ongoing court case. This is nothing short of daylight robbery and economic coup against over 60,000 farmers involving 15,000 hectares of land,” he said.

However, Dr Alfred Obenga said leasing of the Mills wasn’t a bad idea if this would bring benefits to the community and other stakeholders.

“At least the Mills that are under the private sector are doing much better than those under the government, where everyone employed there is thinking of just eating without efficiency.
Also, I hope the private sector is working to inject good capital and resuscitate the dying Mills back to life.

This will create employment and give income to the farmers, hoping that the new owners will not use the vast factory farms as collateral for loans, default and leave the farms to be bought by the tenderpreneurs who are bad boys,” he said.

Obengo said the two sugar factories in Kisumu were set up in the early 60s, the machines are archaic and out of touch with modern realities.

“The cost of production makes their products uncompetitive in pricing. Some of us feel that running them is a burden to the exchequer. If the government can’t pump money into revamping them, then it’s best to lease them.

We can debate about the leasing process, but maintaining status is logically unsustainable,” he said.

Scholar, Dr Akinyi Nyawalo, said leasing was important, but there was a need to make public the process and content of the lease.

“We need to be extremely careful. Under which framework is the lease being made? Though I’m not a lawyer, I’m involved in community affairs and understand something about how natural assets, especially land, are categorized under our new constitution.

Most of these sugar mills were given out as “trust lands” to the government to manage and this was to safeguard the raw material supply to the factories. It was normally massive amounts of land within the neighbourhoods of the factory. If I understand correctly, “trust land” isn’t Government land. It isn’t public land. It is community land that the Government protects, for the benefit of the respective specific community.

It means the government should have no authority to alter the title deed of such land or enter into leasing or whatever legal arrangements, without proper public participation that gives consent to any procedure.

But bad manners in the Government circles reign supreme, and we see this rule disregarded over and over again with impunity. Once again, this is a way of contravening/trashing the dictates of the new constitution and normalising illegalities.

There is a well-articulated procedure to legally make such assets cease being under government (read executive) to directly come under their respective Communities. But it remains in the dark shadows.

The signing of leasing contracts without the community’s participation is illegal, because there is no assurance that these land assets will finally revert back to the community at the end of the lease. They still are intent of defrauding communities of their heritage,” she said.

By Dr. Edris Omondi (Advocate)

attorneyedris@ywcg.org

(Strategic Thinker, Author, Motivational Speaker, Preacher and a Lawyer)

I have just arrived from visiting some of my relatives in Gulu. Of interest was the recent interment of Kasipul Kabondo MP Ongond’o Were, who met his death in a crude manner and is subject to an ongoing investigation.

 His death among my relations from the Acholi Luo in Uganda reignited discussions about justice, spirituality, and the role of traditional wisdom in resolving conflicts.

Among the Acholi, there exists a deep-rooted belief in the power of ancestral justice and the intervention of wise men- ‘ jodak’ or ‘jomariek’. The case of Kenneth Akena, an Acholi man killed in Uganda in 2016, offers a striking example of how traditional justice systems can compel accountability where formal legal processes may falter, and Jomariek among the Luo communities in Kenya could offer alternative justice.  

On November 12, 2016, Kenneth Akena was shot dead along the Kampala-Jinja Highway in Uganda by a man named Kanyamunyu in what was described as a road rage incident.

Kanyamunyu, believed to come from a powerful family, denied murder charges, leaving Akena’s family desperate for justice.  

In Acholi tradition, deaths resulting from violence are treated with special rituals to ensure the spirit does not rest until justice is served. Akena was buried with his head facing the gate—to allow his spirit to wonder, a symbolic act allowing his spirit to seek retribution. The wise men ‘jok’ performed a cleansing ritual using ‘Labwor’ leaves (Vernonia amygdalina), sprinkling enchanted water on the body and grave to invoke spiritual intervention.  

The Spirit’s Unrelenting Pursuit  

Three months later, Kanyamunyu reportedly began experiencing severe hauntings—visions of Akena’s spirit tormented him relentlessly and wherever he was Akena would appear! Unable to bear the psychological distress, his family sought reconciliation with Akena’s kin. The Acholi elders intervened, invoking ‘Mato Oput‘, a traditional justice mechanism where the perpetrator confesses, seeks forgiveness, and offers restitution.  

In this ceremony, Kanyamunyu admitted guilt and was ordered to pay ten cows and three goats as compensation. His admission simplified the court case issue and led to a reduction of his legal charges from murder to manslaughter, demonstrating how traditional and formal justice systems can intersect.  

Luo Traditional Justice in Kenya: The Role of Wise Men

The question posed by a relative from Gulu was, Tinder jomariek onge Kenya?-(“Are there no wise men in Luo land in Kenya any more?“)

This highlights a growing concern over the erosion of traditional conflict resolution mechanisms among the Luo in Kenya. Historically, Luo elders ‘jodong gweng’ and seers ‘ajuoga’ played crucial roles in mediating disputes, cleansing curses, and ensuring justice through rituals like ‘Chira’ (a curse for the unrepentant) and ‘Tero Buru’(ritual cleansing after violent deaths).  

However, modernization and reliance on formal courts have diminished the influence of these wise men. Yet, in cases where legal systems delay justice or fail victims, revisiting these traditions could offer closure. The Luo, like their Acholi cousins, believe in spiritual consequences for unresolved wrongs—where the dead can demand justice through supernatural means.  

Conclusion: Reclaiming Traditional Remedies

The story of Akena and Kanyamunyu serves as a powerful reminder that justice is not only a legal matter but also a spiritual and communal one. While formal courts remain essential, alternative justice systems like ‘Mato Oput’ among the Acholi and ‘Tero Buru’ among the Luo provide culturally relevant solutions that ensure accountability and healing.  

Perhaps it is time for the Luo in Kenya to reconnect with their ‘jodak’ and ‘ajuoga’—not as a rejection of modern law or compromise Christianity as a majority are, but as a complementary force that ensures no crime goes unpunished, whether in court or in the realm of the ancestors.