The Kenyan government requires money for recurrent and development expenditures. This money is provided by the Kenyans inform of taxes, among other sources. Some of the developments undertaken by the government are markets, roads, schools, and hospitals.
Modernization of Karatina market
The history of Karatina open-air market dates back to 1938. Over time, the market was relocated from various sites to its present location. In 2009, under the Economic Stimulus Program (ESP), an initiative to upgrade the open-air market to a modern market was commenced.
The completion date was envisaged to be July 2013.
However, this did not happen, and the project was completed in 2018, five years and three months late, due to various problems, including political interference and conflicts of interest, which led to a change of contractors.
This delay in completion affected the market, town, county and the country.
Effects of completion delays
Karatina market is the main economic lifeline for Karatina town, Nyeri County, and to a large extent the whole country. Therefore, the delay in completing the market had numerous negative effects on all facets of life in Karatina town, Nyeri County, and the whole country.
Some of the negative effects of the delay were economic (increased construction cost from KShs 260 million to KShs 400 million, lost revenues for the County government, lost taxes for the Central government, and increased corruption – procurement, stores allocation, etc.).
Other negative effects were on development (slow urban development of the town, slow reverse migration back to the town, slow growth of the town, and reduced vibrancy of the Nyeri County economy)
Trade in the market and region were also affected. Farmers were demotivated (with no market for their produce), and production fell for many traders who source trade goods from the market. Also, there was lost business in the service sector, such as transport to, within, and from the market.
Poverty levels increased in Karatina town and the surrounding areas due to lost employment opportunities (in the farms, market, and town), lack of earnings from other connected businesses such as hotels, catering, and housing. Hence, this negatively affected the standards of living in the whole region.
Health was also affected, with disease outbreaks in the soggy temporary market where traders had been relocated while the market was under construction. Increased poverty levels also result in poor health.
Karatina market was known globally as one of the largest open-air and vibrant markets in Africa. This attracted a lot of tourism activities to the town. With the delay in completing the market, there were hardly any tourists.
It is hoped that with the opening of the market, all is not lost. Some of these negative effects will be mitigated, and the market will be vibrant once more.
Taking care of the market
Traders in the market and the County government that collects levies and manages the market should not quickly forget their sufferings caused by the delayed completion of the market.
It is disheartening that after the President opened the market on 1st of November 2018, on 20th December 2018, hardly two months had passed and the market’s rubbish was being dumped at market entrances and the market was equally dirty.
If the traders through the Market Association and the County government do not work together to clean the market, it may turn out to be like the famous Wakulima Market in Nairobi, wherein in 2005 the market had to be closed for the first time in 30 years since it was opened.
Apart from the mountain of dirt that was cleared, more than six thousand (6,000) rats (children, fathers, mothers, grandparents, great-grandparents, cousins, etc. – the whole clan) were killed.
A conversation with some of the traders made us realize that Karatina market traders do not know their right to demand a clean environment in the market. It is the same old offhand attitude from eras gone by, where people were expected to pay for services without asking questions or demanding services.
Market traders must demand a clean market and proper disposal of market waste, since they pay for it. The Nyeri County government should also realize that collecting market levies is not enough; they have a responsibility to ensure the market is cleaned.
After all, the cleaning is not for free, but the traders pay for it.
Cleanliness of the market will attract customers, and this will translate into increased business for the traders. The market also creates an opportunity for the county government to market the county as a vibrant economic hub. This will attract investments in manufacturing, for example, packaging, slaughterhouses, etc.
Karatina market and taxes
Modernization of Karatina market cost kshs 475 million. This money came from taxpayers, whether local or donated. This is in addition to the daily fees that the traders pay to the County government. Also, from 1st January 2019, the market traders and all other traders were required to start paying Presumptive tax to the Central government at the rate of 15% of the license fees.
It is the responsibility of traders in Karatina market to ensure the market is well maintained, since it was developed with taxpayers’ money and they are taxpayers. The traders are the owners of the market; it does not belong to the County government. The traders must jealously take care of the market by demanding that the market be cleaned. Otherwise, if the traders do not do this, after a few years there will be no market to write home.
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