Kisumu: 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 Kenya News Agency, preliminary investigations reveal 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 stated that the scam has not only deprived the County of much-needed revenue but has also compromised the integrity of regulatory systems. Wanga mentioned that the County has commenced a thorough audit of all business permits issued over the past year as part of efforts to clean the system. He emphasized the commitment to cleaning up the system, stating that all documents suspected to be forged will be cancelled, and those found culpable will face the full force of the law.

The crackdown, which began last Wednesday, has already resulted in the apprehension of some culprits. Those found with fake or expired licenses have been issued a one-week notice to secure the correct documents. County enforcement officers have been instructed to verify the authenticity of all business licences across the city.

Wanga expressed concern over the prevalence of traders operating without valid licenses, noting that some traders are displaying photocopied permits across multiple premises, while others present licenses unrelated to their businesses. He provided examples, such as hotels using hardware permits, to illustrate the extent of the issue.

The syndicate's operations come at a time when the County government is grappling with a shortfall in Own-Source Revenue collection. According to the County Revenue Board, Sh. 1.8 billion has been collected for the Financial Year ending June 30th, against a target of Sh. 2.1 billion. The Single Business Permit collections have realized 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. He cautioned businessmen and traders to be vigilant and advised them not to pay cash to any County official. Instead, he urged them to secure the documents through the relevant office by paying via the county cashless system.