I have no choice but to overtax you! This is the real reason RUTO has introduced many punitive taxes on poor Kenyans.

 

Friday, June 13, 2024 – President William Ruto’s government has defended the proposed tax measures, saying it has no option but to overtax Kenyans.

In a statement, Treasury Principal Secretary Chris Kiptoo revealed that the decision to introduce new taxes was informed by the country's huge debt. 

He noted the country was grappling with a debt of Ksh11 trillion which must be paid, hence the need to overtax Kenyans.

According to him, the new tax measures would immensely help Kenya manage its bulging debt and help the country reduce the debt stock.

He noted that the Finance bill sought to raise Ksh346 billion which will be used to partially fund the 2024/2025 budget which currently awaits parliament approval.

Kiptoo further warned that the country had reached its optimum and that there was no room for more debt.

While appraising the committee, Kiptoo noted the public debt had significantly increased and represented 70 per cent of the Gross Domestic Product (GDP), which is up from Ksh46 billion in 2010.

The PS noted that out of the Ksh11.2 trillion in public debt, 55 per cent was external debt while domestic debt stood at 45 per cent.

Kiptoo's sentiments came barely a day after the International Monetary Fund (IMF) reached a staff-level agreement with the National Treasury for the disbursement of ksh126 billion ($976 million).

While announcing the disbursement, the IMF urged Kenya to adjust its 2024/2025 budget to include more revenue-raising measures.