As you shop for groceries, household items in your estate shop, or enjoying a meal at your beloved local 'Kibanda,' you might have noticed an intriguing shift in the business's practices.

In Nakuru, many small business owners have bid farewell to the banners displaying Till and Paybill numbers, which are used to facilitate mobile payments.

Instead, they encourage customers to use good old-fashioned cash or discreetly make transactions using those numbers only if they're a regular customer.

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Previously, small and medium enterprises embraced mobile money payments, making it easier for customers to pay for goods and services.

However, it is believed that the Finance Act of 2023 brought about adjustments in charges for these mobile payment methods, causing businesses to seek alternative solutions.

In a recent spot check by Mtaa Wangu, it was discovered that a significant influence of this shift is the presence of Kenya Revenue Authority's (KRA) Revenue Service Assistants.

John*, a gas retailer, shared his experience noting that he welcomed a visit from KRA staff since he was certain about his tax compliance, hoping also for an opportunity to ask tax related questions without waiting in the long queue at the local tax offices.

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However, things took an unexpected turn when they examined his till number transactions where he was handed a tax debt of Sh 400,000, dated back to the inception of his till number.

He notes that the move means that he'll have to close the shop which is where he gets to earn a livelihood and provide for his family.

"The stock I have in the shop is not even enough to pay the debt at the moment. I am not against paying taxes but the government should find a way of ensuring business people are doing businesses with ease even with the new adjustments," John says

John's situation isn't unique as many business owners have found themselves in a similar predicament, unable to cover these unforeseen tax debts with their current resources.

He acknowledges the importance of taxes but calls for a more business-friendly approach in light of these adjustments.

Chris Karibe, Visionaries Smokies and Sausage Group Secretary at his shop in Nakuru city on November 5, 2023.

Photo credit: MERCY KIHUGU/MTAA WANGU

Visionaire Smokie Vendors is among the businesses that has continued to display their till numbers. Chris Karibe, the business secretary, notes that most business owners lack the knowledge that they ought to remit taxes from all the sources of income not only cash.

"The reason as to why most businesses are not displaying the tills and pay bills is because they only remit the tax of cash paid to the business forgetting it's also a requirement to remit taxes from other modes of payments to the business," Karibe notes.

The government introduced a team of newly trained field officers, known as Revenue Service Assistants, with the mission to boost compliance and revenue collection.

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This has led small and medium businesses to adjust to this new landscape, seeking ways to thrive despite the challenges posed by changing tax regulations.

mercykihugu@gmail.com

Biz Lounge: Why businesses in Nakuru are shying away from paybill, till numbers

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Mercy Kihugu