Meg Whitman Asks William Ruto To Create Jobs Before Taxing Kenyans: "Don't Just Go For Same People"

• The U.S Ambassador to Kenya, Meg Whitman, emphasised that creating job opportunities would increase the country's tax base
• She added that focusing on job creation will also help the government get the amount of money it requires to run the country
• President William Ruto is on record saying that he intends to increase taxes from 14% to 22% before 2027

The U.S. Ambassador to Kenya Meg Whitman has shared her perspective on the taxation policies implemented by the Kenya Kwanza government, highlighting concerns over high tax rates impacting Kenyan citizens.

What are Whitman's thoughts on taxation?

Whitman asserted that for a more stable economy, the government should adopt a consistent form of taxation, emphasising that businesses base their investments on predictable returns.

Speaking during JKLive on Wednesday, May 15, Whitman stressed the need for President William Ruto-led government to generate additional job opportunities as a means to increase tax revenue collection.

She additionally remarked that directing efforts towards job creation would facilitate the government in obtaining the necessary funds to sustain the country's operations.

"When more people have a steady income, they can pay taxes, so you expand the number of people and not just go for the same people."

What did Ruto say about taxation?

Earlier on, Ruto defended the new tax proposals in the Finance Act 2024.

The National Treasury has put forth alterations to tax measures and the introduction of new levies within the Finance Act 2024, slated to be enforced as of July 1, 2024.

Speaking at State House Nairobi on Tuesday, May 15, Ruto addressed the Harvard Business School’s Class of 2025, outlining his goal to elevate Kenya's tax revenue to 22% as a portion of overall revenue.

According to the president, as of 2023, the country's tax revenue stood at 14% of the total revenue, significantly lower than its counterparts which gather 22% and 25%.

The head of state clarified that to accomplish this objective, Kenya must reduce its expenditures.

What is entailed in the Finance Act 2024

The bill suggested modifications to the Income Tax Act, VAT, Excise Duty, and the Affordable Housing Act, among additional measures.

The bill, released on May 9, 2024, received its initial reading on May 13, 2024, subsequent to submission by Treasury CS Njuguna Ndung'u to parliament.

Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.