By Correspondent
A charitable group suffering the effects of the Covid-19 has made an unsuccessful attempt to be exempted from taxes.
SOS Children’s Villages Kenya made an appeal to the Meru County Revenue Board for tax waivers amounting to Sh135, 500 after donor taps ran dry due to Covid-19.
Through its National Director Walter Odhiambo and its Program Director in Meru Joyce Kaaria the humanitarian organization said it could not raise funds to sustain operations.
The two officials in putting in their case to the Meru County Assembly for intervention stated they run programs in alternative care, education, child protection, youth empowerment, and family strengthening.
They wanted to be exempted from tax items such as business permits (Sh18, 500), signboards (Sh32,000), parking fees for its three vehicles (Sh36,000), and posters and fliers (Sh3,000).
Others were land rates (Sh36, 000) and road-shows (Sh10,000).
It argued donor funds were not forthcoming and it could not raise adequate funds locally.
“We humbly request the Committee on Finance and ICT to grant SoS Children’’ Villages Kenya exemption from county levies that include business permits, an annual subscription of forest waters, signage and events that require public participation,” the charity pleaded.
It added: “With this exemption, SoS Children Villages commits to invest the savings from the exemption towards caring for more children, youth and vulnerable families”.
Its current yearly budget is Sh67.2 million with Sh63.8m funded by donors.
It raises five percent of its budget (Sh3.3m) through friends of the organization, selling tickets, T-shirts, memorabilia, hosting events, and school fees raised from its kindergarten.
This amount has decreased as donors have been affected by the Covid-19 pandemic, the two officials said.
In stating their case to the assembly and in extension the county revenue board, they said 65 percent of the funds, or Sh45.6m was to cater for fees and other school requirements, food, and clothing.
The center caters to 2, 308 girls in the organization’s education programs and had supported 100 young mothers mentored to enroll back in schools.
It also runs the Herman Gmeiner Kindergarten which has 118 children, 35 from SOS Children Village.
Out of its total annual budget, Sh6.7m is meant for the children’s healthcare while Sh3.3m is for administrative costs.
Sh13.4m is for salaries and medical, including for mothers.
The organization officials held a meeting with the Dennis Kiogora-chaired Assembly Committee on Finance and ICT and Meru County Revenue Board.
The income generated from the few fees payers supports the sponsored children and balance caters for meals, salaries for kindergarten staff, and maintenance of the school.
“We run a kindergarten which is registered by the Ministry of Education. This program is meant to provide our target group with basic needs and it is not meant for profit. Through this facility the organization is able to raise five percent of its budget,” said the charity officials.
But the Revenue board told Mr. Kiogora’s committee it could not waive taxes for the charity, saying the kindergarten is a profit-making business as parents pay fees just like any other school in Meru.
However, Kiogora said the organization should write to County Finance Executive who has the power to waive or vary a rate, fee, or charge.
Makena Muthaura (nominated) pointed out the exemption of the fees on the charity had the potential to open a floodgate for more similar requests.
