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Kisii County has passed its Finance Bill 2025, introducing tax cuts for small businesses while significantly increasing fees for billboard advertising and the vital soapstone industry.
In a significant development for local commerce and revenue generation, the Kisii County Assembly on Tuesday, October 7, 2025, passed the Finance Bill 2025. The new legislation is designed to alleviate the tax burden on small businesses within the county, a move welcomed by many entrepreneurs. Conversely, the bill introduces substantial fee increases for billboard advertisements and the region's prominent soapstone industry, sparking discussions among affected stakeholders.
Peter Otachi, the Chairperson of the Finance Committee and Monyerero Ward MCA, stated that the bill aims to streamline county finances and improve transparency in public resource management. He emphasised that the new bill is intended to ease the tax burden on residents compared to the 2024 bill.
The adjustments in the Finance Bill 2025 reflect the county government's ongoing efforts to balance revenue generation with economic support for its citizens. While small businesses will benefit from reduced levies, the increased charges for billboards and soapstone are expected to significantly boost county revenue. The soapstone industry, particularly in the Tabaka Hills of South Mugirango, is a cornerstone of Kisii's cultural identity and a key economic driver, with products sold globally.
The previous Kisii County Finance Act, 2021, outlined various levies, fees, and service charges payable to the county government, including those for businesses and outdoor advertisements. It also established provisions for cess on raw goods and a special levy on value-added products to promote industrial growth.
The Finance Bill 2025 is expected to be implemented in the upcoming financial year, pending assent by Kisii Governor Simba Arati. This legislation follows broader national discussions on fiscal management at the county level. For instance, on Monday, October 7, 2025, Senators pushed for greater oversight of the more than 5,400 commercial bank accounts operated by county governments, citing concerns over potential misuse of public funds.
While small business owners are likely to welcome the tax reductions, the increased fees for billboard advertising and soapstone businesses have raised concerns. The bill proposes increasing soapstone business fees from KSh 20,000 to KSh 50,000, and billboard advertisement fees from KSh 165,000 to KSh 500,000. These significant hikes could impact the profitability and operational costs for businesses in these sectors, particularly for soapstone carvers and traders who rely on this traditional craft for their livelihoods. The Kisii County Government has previously expressed intentions to incorporate a Tabaka Soapstone Development Authority to bring order to the mining sector and fully exploit the resource's potential.
The substantial increase in fees for billboard advertising could lead to a reduction in outdoor advertising, potentially impacting local media and marketing companies. For the soapstone industry, while the county aims to promote its growth, a sharp increase in fees could burden artisans and small-scale miners, potentially hindering their ability to compete or sustain their businesses. This could inadvertently affect the cultural heritage associated with soapstone carving in the region.
The precise impact of the increased fees on the livelihoods of soapstone artisans and the overall competitiveness of the industry remains to be seen. Further clarity is needed on how the county government plans to support these businesses in adapting to the new fee structure and whether any mitigating measures will be put in place to ensure their sustainability. The specific details of the tax cuts for small businesses, including eligibility criteria and the extent of the reductions, are also yet to be fully disclosed.
Stakeholders will be closely watching the implementation of the Finance Bill 2025 and its effects on various sectors. The response from billboard advertisers and the soapstone community, particularly regarding the new fee structures, will be crucial. Additionally, the county government's strategies for enhancing transparency in revenue collection and utilisation, as well as any initiatives to support affected industries, will be key areas of focus in the coming months.
