Prepare for tough times as RUTO vows to increase tax rate to 22% from the current 14% by the end of his presidency

Thursday, May 16, 2024 - President William Ruto has vowed to elevate Kenya's tax rate to a whopping 22 percent from the current 14 percent.

Addressing the Harvard Business School’s Class of 2025 at State House, Nairobi on Wednesday, Ruto stressed the importance of bolstering the nation's financial health and reducing reliance on external borrowing.

The Head of state outlined a phased approach to achieve the desired increase, aiming for a rise to 16 percent in the current year, with a long-term target of reaching between 20 and 22 percent.

“My drive is to push Kenya, possibly this year we will be at 16 percent from 14 percent. 

"I want in my term, God willing, to leave it at between 20 and 22 percent. 

"It's going to be difficult, I have a lot of explaining to do, people will complain but I know finally they will appreciate that the money we go to borrow from the World Bank is savings from other countries,” Ruto said.

He further said that Kenya's tax revenue as a percentage of total earnings trails behind that of peer nations on the continent.

"Our peers in the continent are on an average of between 22 and 25 percent, which means our taxes are way below those of our peers," he explained.

The Kenyan DAILY POST