Ruto Vows to Push Taxes From 14 to 22 Percent

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Wednesday, May 15, 2024 –President William Ruto has vowed to push local taxes even higher upto 22 percent by the end of his term.

Speaking from Statehouse Nairobi during his meeting with a team from the Harvard University on Tuesday May 14, the commander-in-chief noted that Kenya has to make its own revenues and reduce its debt burden through overborrowing, if economic sustainability is to be achieved.

Ruto emphasized his resolve not to preside over a bankrupt country and added that he had already put in place measures meant to cut down overspending.

“I am not going to preside over a country that is bankrupt and in debt. I made a resolve to cut down spending and told my teams that there will be no free lunch going forward,” announced Ruto.

The head of State also added that he had reached at a conclusion that this country will nolonger be spending what it does not have.

“I have two fundamental things; we can’t spend what we don’t have,” further stressed Dr. Ruto.

He argued that it was a wrong belief that Kenya was paying the highest taxes in the continent when, in reality, Kenya is below the rest of the countries.

“Looking at our peers, Kenyans have been socialised to believe that they pay the highest taxes but empirical data shows Kenya as, of last year, our percentage of revenues was at 14 percent. Our peers pay 22 and 25 percent. We are way below our tax bracket as compared to our peers in the continent,” stated President Ruto.

To bolster his point, Dr. Ruto compared developed countries like France to Kenya saying France is currently at 45 percent what Kenya can also achieve despite the pain.

“I am still persuaded and have a a case that we must begin to enhance our revenues higher if we are a serious State. We must drive our domestic taxes higher. This year we will be at 16 percent from 14 percent. It is my target,” Ruto said adding that at the tail end of his term, this will be at 20 to 22 percent.

“Money, we go to borrow from the World Bank is savings from other countries. And we must begin to have our own”.

He was holding a high-level engagement with the Harvard Business School’s Class of 2025 students on Africa’s trade and investment potential.

The meeting was organised at the Statehouse, Nairobi where he was joined by the United States Ambassador to Kenya, Meg Whitman.