The County Government of Kisumu has unearthed a syndicate behind the issuance of fake business permits and licences, resulting in a loss of over Sh.100 million in County revenue.
The racket, which is believed to involve some County Revenue Officers, working in collusion with fraudsters, has led to the circulation of counterfeit permits to unsuspecting traders within the city.
According to preliminary investigations, the syndicate has been operating in the shadows of legitimate county operations, issuing forged documents that closely resemble authentic business licences.
Some of the documents are designed and printed in cyber cafes, targeting businesses within the Sub-counties and far-flung corners of the Lakeside County.
Kisumu City Manager Abala Wanga, said the scam has not only deprived the County of much-needed revenue but has also compromised the integrity of regulatory systems.
Wanga said the County has commenced a thorough audit of all business permits issued over the past year in a bid to clean the system.
“We are committed to cleaning-up the system. All documents suspected to be forged will be cancelled, and those found culpable, will face the full force of the law,” he cautioned.
The crackdown which began, Wednesday, last week, he said, has already netted some culprits, adding that those found with fake or expired licenses, have been issued with a one week notice, to secure the correct documents.
County enforcement officers, he added, have been instructed to verify the authenticity of all business licences across the city.
“It is worrying to see so many people trading in the city without valid licenses. This will no longer be tolerated. Some traders are displaying photocopied permits across multiple premises, while others present licenses unrelated to their businesses. For example, you find a hotel using a hardware permit,” he said.
The syndicate’s operations come at a time the County government is grappling with a shortfall in Own-Source Revenue collection.
According to the County Revenue Board, so far Sh. 1.8 billion has been collected for the Financial Year ending June 30th.
This is against the target of Sh. 2.1 billion with the Single Business Permit which has been breached realising Sh. 200 million against a target of Sh, 300 million.
Kisumu County Revenue Board Chief Executive Officer (CEO) Phillip Adundo, attributed the Sh. 100 million shortfall from Single Business Permit Collections to the fraudulent activities, cautioning businessmen and traders to be vigilant.
He asked traders not to pay cash to any County official but secure the documents through the relevant office by paying through the county cashless system.
By Chris Mahandara
