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Kenya Government Cracks Down on Sh100 Million Fake Business Permit Syndicate

In a decisive move to stamp out corruption, Kisumu authorities have launched a major crackdown on an elaborate syndicate accused of issuing fake business permits valued at over Sh100 million (\$700,000). The operation, which began early this week, involved coordinated raids on offices, clearance points, and local businesses suspected of colluding with the fraud ring.

According to county officials, the counterfeit operation was highly organised, with syndicate members forging authority stamps and signatures before selling the fake licenses to small and mid-sized businesses across Kisumu County. Investigators uncovered evidence suggesting the fake permits enabled some firms to operate undetected, evading safety checks and tax obligations.

In coordinated raids, officers seized numerous forged documents, official stamp templates, and computer equipment allegedly used for the counterfeit operation. “We are treating this as organized crime,” said a senior official in the county’s licensing office. “Those arrested will face charges including forgery, issuing false documents, and tax evasion.”

County licensing officials revealed that the criminal enterprise had been active for over a year, targeting businesses that required clearances for operations like food stalls, kiosks, construction, and trade. The fake licenses carried forged endorsements purporting to show approval from the Kisumu County Government, enabling some unlicensed businesses to escape inspections and evade license fees.

Local business owners responded with mixed emotions. Many praised the crackdown, hoping it will level the playing field for law-abiding enterprises. “It’s unfair that some people get ahead by paying less. This sends a strong message that cheating ends now,” remarked one kiosk operator. Others, however, expressed concern about potential delays in obtaining legitimate permits amid the intensified scrutiny.

County officials confirmed that several staff members within the licensing department are under investigation for alleged complicity. A disciplinary committee is reviewing internal records, and those implicated will face suspension or criminal charges if found culpable.

The Ethics and Anti‑Corruption Commission (EACC) has pledged to support the investigation and recover unpaid permit fees. An EACC spokesperson said, “The recovery of lost revenue will fund essential county services.” Legal proceedings against the syndicate suspects are expected to begin within the coming weeks.

As Kisumu intensifies its effort against fraudulent licensing, authorities are urging local entrepreneurs to apply for permits through official channels, beware of intermediaries offering shortcuts, and report suspicious activity via the county’s anti-corruption hotline.

This operation aims not only to recuperate significant revenue, but also to restore confidence in Kisumu’s business environment by reinforcing accountability, transparency, and fairness.

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