Kenyan MPs Oppose Tax Increase

MPs in Kenya have stated their opposition to a rise in taxation that may be under consideration by the Treasury as part of moves to increase revenue and reduce the budget deficit. 

Warning of the potential negative impact of a rise on growth projections, the Parliamentary Budget Office has advised Treasury Cabinet Secretary Henry Rotich to instead introduce and implement measures to fix loopholes in the system.

Estimates put the loss to the budget as a result of corruption at around one-third of the total annual budget, which stands at $27 billion for the 2019/20 fiscal year. Meanwhile, Kenya’s public debt is expected to hit $65 billion in 2019. 

MPs have also suggested the removal of corporate income tax and VAT exemptions in order to raise additional revenues.