Kenyans Protest as President Ruto pushes for Higher Taxes amid rising living costs
Kenyan President William Ruto is facing growing discontent over his government’s tax hikes, despite his assertion that the country is under-taxed.
Since taking office in August 2022, William Ruto has introduced and increased various taxes, including those on salaries, fuel, housing, and health insurance.
He argues that higher taxes are necessary to improve public services and reduce Kenya’s significant debt burden, which stands at nearly $80 billion.
Ruto claims that Kenya’s tax-to-GDP ratio is lower than many African countries, although this comparison is contested. He aims to raise this ratio to at least 20% by 2027.
However, economist Odhiambo Ramogi and others argue that the problem lies in inefficient tax collection and poor governance, not the tax rates themselves.
They suggest that higher taxes could stifle economic activity and lead to reduced revenue.
Public dissatisfaction has led to deadly protests and widespread frustration, with opposition figures like Miguna Miguna vocalizing the sentiment that Kenyans are overtaxed and underserved.
Despite this, the government plans to implement more taxes, including those on car ownership and bread, in the upcoming budget.
Critics argue that better tax collection, reduced corruption, and more efficient use of revenues would be more effective solutions.
Source: bbc.com
