An independent government office for the first time publicly warned President William Ruto's severe tax measures could be counterproductive and potentially plunge the country into a steep fall.
Controller of Budget Margaret Nyakang’o said there is an optimal tax rate, which if surpassed would trigger an economic slump.
This, she said, would negate the very intention of taxation.
“Review the existing tax structure to ensure it is progressive and does not unduly burden low-income households,” Nyakang’o told the National Dialogue Committee.
“The increase in tax rates, as evidenced in the framework, may lead to potential adverse effects.”
The CoB boss spoke amid a sharp surge in the cost of living triggered mainly by unprecedented fuel costs.