The biblical passage where Jesus says “Render unto Caesar the things that are Caesar’s, and unto God the things that are God’s”, has long been a debate regarding the boundaries of taxation.
While it emphasises the importance of fulfilling civic and religious duties separately, it does not specify the extent to which Caesar, or, in modern terms, the government is entitled.
The Kenya Kwanza administration appears to have interpreted this ambiguity to its advantage, imposing taxes in ways that increasingly burden ordinary citizens.
American statesman Daniel Wecbster once warned, “The power to tax is the power to destroy.” These words remain relevant today.
They underscore the immense authority that governments wield through taxation. In Kenya’s evolving socioeconomic landscape, where the Kenya Kwanza government has been entrusted with revenue collection, it is crucial to examine how tax policies impact financial stability, economic equality, and social welfare.
As taxpayers struggle with an increasing tax burden, questions arise about how these policies align with the principles of equality and non-discrimination, which are fundamental pillars of development and human rights.
A 2023 Oxfam study revealed that just 130 of Kenya’s wealthiest individuals collectively hold more wealth than the poorest 60 per cent of the population; approximately 33 million people in a country of 55 million people.
This stark disparity is exacerbated by a tax system that disproportionately burdens the lower-income population while offering tax exemptions, incentives, and concessions to the wealthy, as evidenced in the 2023 and 2024 finance bills.
Ideally, taxation should serve as a tool for funding public development programmes.
However, in Kenya, access to quality public services continues to deteriorate despite increased taxation on ordinary citizens as evidenced through budget cuts in critical socioeconomic sectors, which in turn have strained service delivery, while political influence has fuelled efforts to privatise essential public services.
Further, policies such as the New Higher Education Funding Model and the Social Health Insurance Fund threaten to increase the cost of education and healthcare, further widening the gap between the wealthy and the poor.
The country’s growing public debt further exacerbates these challenges. With debt now standing at 70 per cent of GDP and debt servicing consuming approximately 15.8 per cent of government revenue, the government has turned to aggressive taxation as a means of repayment.
This debt repayment and taxation cycle threatens to deepen inequality, increase poverty and heighten economic vulnerability.
Although Kenya’s 2023–2027 Medium-Term Plan recognises equity as an essential factor in development, it lacks a clear strategy to reduce the country’s widening wealth gap.
Consequently, essential services such as healthcare and education are increasingly out of reach for ordinary citizens who also double as taxpayers.
The Kenya Kwanza government campaigned on a ‘bottom-up’ economic model, promising to tackle the high cost of living, food shortages, unemployment, and economic disparities.
This model was meant to uplift ordinary citizens and drive national prosperity. Yet, as taxes rise and essential services remain inaccessible, many Kenyans question whether these promises are being fulfilled.
When thoughtfully designed, tax policies play a crucial role in shaping a country’s economic and social landscape by promoting equity and ensuring that resources are fairly generated and distributed.
However, Kenya’s current approach risks reinforcing economic, social, and cultural inequalities instead of addressing them. This year’s World Social Justice Day, commemorated on February 20, is themed around empowering inclusion and bridging gaps for social justice.
With this theme, the world emphasises the need for inclusive policies and strong social protection systems to combat systemic inequality—the same inequality that Kenya is facing and highlighted in this column.
As the world marks this day, Kenyans should reflect on whether our governance system is building a fairer and more equitable nation or exacerbating the very inequalities it pledged to address.
Annet Nerima is the Kenya Human Rights
Commission’s program manager on inclusion and political justice
