Kenya’s new President William Ruto vowed to pursue tax dodgers and double revenue collection to help kickstart the ailing economy, his office said.
The 55-year-old leader said no-one would be able to avoid paying taxes, and forecast that tax revenue could surge from 1.8 trillion shillings ($14.8 billion) today to at least three trillion shillings, without giving a timeframe.
“There will be no exemption for people who think they are (politically) connected: I will lead the way,” his office quoted Ruto as saying.
Kenya suffers from endemic corruption that has enabled many in the wealthy minority to avoid taxes.
Ruto, who cast himself as the champion of the poor in the Aug 9 poll, was speaking at an event with leaders from the manufacturing industry.
He called on the sector to create more value-added products, saying it could increase manufacturing’s economic contribution to 20 percent of gross domestic product by 2030.
“There are bigger opportunities than challenges in Kenya. Let us focus more on the opportunities.”
His warning on tax evasion coincided with a move by fiscal authorities to collect data on rental properties in the capital Nairobi — a directive expected to expand the tax base and catch those who have not been disclosing income from rent.
The rags-to-riches businessman last month said he would overhaul Kenya’s income tax regime and introduce reforms that would press high earners to pay more to help reduce inequality.
Ruto also promised to rein in borrowing, with Kenya creaking under the weight of a $70-billion debt mountain.
Kenya is East Africa’s most dynamic economy but is facing many problems. About a third of its population of around 50 million live in poverty.
Prices for basic goods rocketed after the Covid-19 pandemic and Russia’s invasion of Ukraine, and unemployment remains stubbornly high, particularly among the young.
Ruto, who was deputy to former president Uhuru Kenyatta, had a bitter falling-out with his boss while in office, lambasting his policies for increasing debt.
Among his first acts after assuming power was to slash food and fuel subsidies introduced by Kenyatta.
Source: Nam News Network