Wednesday, February 28, 2024 – President William Ruto has sought to endear himself to investors at the expense of hustlers who elected him into office.
This is after he unveiled plans
to lower the current rate of corporate tax as part of efforts to attract
investors to the country.
In the Budget Policy Statement
(BPS) released in February, the National Treasury noted that the tax rate would
be decreased from the existing 30 per cent to 25 per cent.
Corporate tax is usually applied
to profit made by a company over a specified period (gross income minus gross
expenditure).
"The Government will reduce
the corporate rate of tax from the current 30 per cent to 25 per cent over the
strategy period. Kenya's Corporate Income Tax (CIT) rate is at 30 per cent
compared to the world average of 23 per cent and the African average of 29 per
cent," read the policy statement in part.
The Treasury explained that the
reduction of the tax rate would serve as an incentive for foreign investors
looking to establish operations in the country.
The current rates have
also made investors in the country look for other markets.
Kenya's taxation policies have
already prompted multiple mega-multinational companies to leave the Kenyan
market in recent years.
Notably, the Henley Private
Wealth Migration Report 2023 revealed that 100 millionaire investors departed
from Kenya in 2022.
A similar number was estimated
to have left the country in 2023.
The Kenyan DAILY POST
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