By Dorothy Musyoka
The Finance Bill 2024 which the National Treasury published on May 9th has triggered indignation among Kenyans.
Kenyans argue that the proposed tax measures would make it even more difficult for most households to afford essential goods.
The Finance Bill 2024 comprises tax measures proposed by the Kenya Kwanza government to raise the country’s revenue.
Despite the outcry, President Ruto has vowed to impose additional taxes on citizens stating that it will enhance the country’s revenue.
“We must begin to enhance our revenue, because if we are a serious state we must be able to enhance our taxes,” said the President.
During a meeting with Harvard University students at State House in Nairobi, the president defended the government’s plan to impose extra taxes on Kenyans, emphasizing his commitment to ensuring that Kenya charts a path towards sustainability and avoids borrowing.
“When I came into office I told everybody tighten up your belts, I am not going to preside over a bankrupt country, I am not going to preside over a country that is in debt distress,” said the Head of State.
According to the head of state, he aims to raise the country’s average tax rate from the current 14 percent to 16 percent by the end of this year and aims for a rate of between 20 and 22 percent by the end of his tenure in office.
“My drive is to push Kenya, possibly this year we will be at 16% from 14%. I want in my term, God willing, to leave it at between 20 and 22 %. 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,” noted the President.
The president also emphasized that the country should live within its means citing that the nation must cut on its spending.
“Reduce, we cannot spend what we don’t have,” reiterated Ruto.
President Ruto’s remarks come barely a week after the National Treasury unveiled the Finance Bill, 2024.
The bill proposed significant changes to Kenya’s tax system, including the introduction of new taxes and the removal of exemptions.