In a statement, Treasury
Principal Secretary Chris Kiptoo revealed that the decision to introduce new
taxes was informed by the country's huge debt.
He noted the country was
grappling with a debt of Ksh11 trillion which must be paid, hence the need to
overtax Kenyans.
According to him, the new tax
measures would immensely help Kenya manage its bulging debt and help the
country reduce the debt stock.
He noted that the Finance bill
sought to raise Ksh346 billion which will be used to partially fund the
2024/2025 budget which currently awaits parliament approval.
Kiptoo further warned that the
country had reached its optimum and that there was no room for more debt.
While appraising the committee,
Kiptoo noted the public debt had significantly increased and represented 70 per
cent of the Gross Domestic Product (GDP), which is up from Ksh46 billion in
2010.
The PS noted that out of the
Ksh11.2 trillion in public debt, 55 per cent was external debt while domestic
debt stood at 45 per cent.
Kiptoo's sentiments came barely
a day after the International Monetary Fund (IMF) reached a staff-level
agreement with the National Treasury for the disbursement of ksh126 billion
($976 million).
While announcing the
disbursement, the IMF urged Kenya to adjust its 2024/2025 budget to
include more revenue-raising measures.
The Kenyan DAILY POST
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