Kisumu County Uncovers Sh100 Million Fake Business Permit Syndicate
The County Government of Kisumu has uncovered a fraudulent syndicate behind the production and distribution of fake business permits and licenses, leading to an estimated loss of over Sh100 million in revenue.
Investigations suggest that some County Revenue Officers may have colluded with fraudsters to issue counterfeit permits to unsuspecting traders across Kisumu.
According to preliminary findings, the forged documents closely resemble legitimate business licenses and have been circulating quietly, especially targeting traders in various sub-counties and remote areas of the lakeside county. Many of these fake permits are said to be designed and printed in cyber cafes.
Speaking on the matter, Kisumu City Manager Abala Wanga expressed concern over the extent of the scam, stating that it has not only drained vital revenue from the county but also eroded the integrity of Kisumu’s regulatory systems.
“We are committed to cleaning up the system. All suspicious documents will be cancelled, and those responsible will face legal action,” Wanga stated.
He noted that the county has already launched an audit of all business permits issued in the past year and has begun a widespread crackdown, which started last Wednesday. Some suspects have already been apprehended, and traders found with fake or expired licenses have been given a one-week ultimatum to regularize their documentation.
Wanga revealed that some traders were using photocopied permits across multiple locations, while others were operating businesses with licenses meant for entirely different types of operations — for example, a hotel running under a hardware permit.
“It is worrying to see so many people trading without valid licenses. This will no longer be tolerated,” he said.
The crackdown comes amid concerns over the county’s own-source revenue performance. The Kisumu County Revenue Board reports that only Sh1.8 billion has been collected so far in the financial year ending June 30, falling short of the Sh2.1 billion target.
The Single Business Permit stream has been especially affected, bringing in only Sh200 million against a target of Sh300 million — a shortfall directly linked to the fake permit syndicate.
County Revenue Board CEO Phillip Adundo urged traders to remain alert and avoid cash transactions with county officers.
“All payments should be made through the official county cashless system. This is the only way to ensure authenticity and accountability,” he advised.
The County Government has vowed to continue with the crackdown and restore order in the licensing process, warning that anyone found engaging in or benefiting from the fake permit network will face strict legal consequences.
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