US Ambassador Whitman Urges Ruto to Create Jobs First Before Increasing Taxes

In a hurry? Here’s a quick summary…

• U.S. Ambassador Meg Whitman expresses concerns over President Ruto’s plan to raise Kenya’s tax rate, emphasizing the importance of tax consistency and job creation for economic stability.
• President Ruto defends the proposed tax increase as part of a strategy to boost revenue and reduce borrowing, aiming to raise the tax rate to 20-22% by the end of his term despite anticipated public challenges.

During an appearance on Citizen TV’s JKLive Show, U.S. Ambassador to Kenya, Meg Whitman, shared her concerns regarding President William Ruto’s proposal to raise Kenya’s tax rate from 14 percent to 22 percent by the end of his term. 

Emphasizing the importance of tax consistency for economic stability, Whitman suggested maintaining the tax rate for several years to support businesses in making long-term investments.

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Whitman advocated for expanding the tax base through job creation rather than increasing tax rates, citing the importance of having more individuals with steady incomes contributing to the tax pool. 

She highlighted the significance of good-paying jobs with benefits in bolstering tax revenue.

President Ruto defended the government’s plan to impose additional taxes, positioning it as a strategy to boost revenue and reduce dependency on borrowing. 

He outlined his intention to incrementally raise the average tax rate to between 20 and 22 percent by the end of his term, acknowledging the economic challenges this may pose while asserting the long-term benefits of increased tax revenue for the country’s development.

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Ruto acknowledged the need for explanation and anticipated complaints from the public regarding the proposed tax hikes but underscored the potential benefits, suggesting that reduced reliance on external borrowing would ultimately benefit Kenya’s economy.