NAIROBI, Kenya, Jan 30 – Kenya needs to cap the growing burden and the unpredictability of taxation if it is to grow an economy that is currently sluggish.
This is according to a report by the American Chamber of Commerce which says the spiralling taxation will restrain businesses from accelerating reinvestment needed for growth in output and job creation.
Phillipine Mtikiti, the President of the Chamber’s Kenyan chapter describes Kenya’s taxation measures as short-sighted adding that it will be detrimental to long term business growth.
Mtikiti advocates for regulations and taxation that focuses on increasing the tax base as it would have long-term positive outcomes toward the economic empowerment of all Kenyans.
“We must grow the economic pie so that we have more to distribute towards long term investment for both public sector infrastructure and private sector capabilities and capacities,” Mtikiti said.
This comes even as manufacturers in the country continue to complain over unplanned tax changes by the government, saying they want the business environment to remain predictable.
“Policy and lawmakers need to ensure that they do not shift taxation goalposts without sufficient consultation,” Stanbic Bank East Africa economist Jibran Qureishi said earlier this month.
The hurtful taxation regime, which has recently affected small businesses in the country, is part of President Uhuru Kenyatta’s method of boosting revenue to achieve his ambitious Big 4 agenda before his second and last term as president expires in 2022.