CS NJUGUNA NDUNG’U now speaks on companies closing down and investors fleeing the country due to heavy taxes imposed by RUTO – You won’t believe what he said?

 Friday, June 14, 2024 - Treasury Cabinet Secretary Njuguna Ndung'u has dismissed claims that many companies were closing down and investors fleeing the country due to heavy taxes imposed by President William Ruto’s government.

While addressing the media yesterday, the CS described the concerns as hearsay and political agenda.

He maintained that the taxation among industries was balanced and would not cause the investors to relocate to other countries.

According to the CS, Kenya is still not at a point where taxes can force companies out of the Kenyan market.

"There is nothing like closing up or relocating. This is a political agenda. Everywhere you go, we try to balance out policies so that nobody feels disadvantaged. That is hearsay.”

"In Kenya, we have not raised taxes to the point that firms can close down. I have been living in this country, I have done most of the policy work in my own individual capacity," he stated.

The CS made the remarks after companies, especially manufacturers, warned that the tax proposals in the Finance Bill 2024 would increase the cost of doing business.

Some companies noted that they would be seeking to relocate to other countries where taxation was fairer.

The Finance Bill 2024 is seeking to introduce taxes such as the Eco Levy, and the 2.5 per cent Motor Vehicle Tax among others.

Coupled with existing taxes such as the Housing Levy, companies will be spending more money to pay taxes, a move that could see some of them reduce their workforce.