Government spokesman Isaac Mwaura has defended Kenya Kwanza’s tax regime saying measures are being reviewed to ensure the burden on ordinary Kenyans is reduced.
Addressing a press conference to respond to concerns raised by Catholic bishops, Mwaura said government’s proposed reforms aim at achieving a fair and equitable tax system.
“Our goal is to develop an economy that relies more on robust domestic revenue generation than on foreign debt,” he said.
Mwaura said plans to expand the digital tax base to include ride-hailing, food delivery, freelance and other professional services is aimed at ensuring digital service providers contribute fairly to the economy.
“The government recognises the importance of a balanced and fair tax regime and is reviewing measures to ensure that the burden on ordinary Kenyans is reduced. The government is working towards reforms to make the tax system equitable while meeting the national development agenda,” he said.
The Kenya Conference of Catholic Bishops (KCCB) on Thursday strongly criticised President William Ruto’s government for overtaxing Kenyans.
The bishop’s statement read on their behalf by Archbishop Maurice Muhatia in Ruaraka, Nairobi, raised concerns over the Kenya Kwanza administration’s economic and political policies, citing in particular the recently introduced Tax Amendment Bill, 2024.
The bishops argued that the bill reintroduces the controversial Finance Bill, 2024, which was resoundingly rejected by Kenyans.
“It seems to be a hidden way of reintroduction the rejected Finance Bill, 2024; we should listen to the cry of Kenyans,” the clerics said.
In his response, Mwaura said the rejection of the Finance Bill occasioned the loss of Sh346 billion in projected revenue.
He said the government must innovatively look for alternative means to finance the national budget.
“The government has resorted to partnerships with bilateral and multilateral partners such as the IMF who recently gave us Sh78.3 billion extended credit facility to bolster our fiscal and climate resilience and Sh34 billion facility from China to help build roads especially in rural areas,” he explained.
Mwaura
added that the government is also exploring opportunities under Public Private
Partnership arrangements as a lawful and viable alternative to development
financing.
