Ruto intends to increase taxes from 14 to 22 percent by the conclusion of 2024

President William Ruto has justified the government’s decision to implement additional taxes on Kenyans, asserting that it’s imperative for steering the country away from debt.

“I refuse to lead a nation in financial ruin; I refuse to lead a nation drowning in debt. We must tighten our belts,” Ruto affirmed.

He outlined plans to increase the country’s average tax rate from 14 percent to 16 percent by the close of 2024, aiming for a range between 20 and 22 percent by the end of his tenure.

“My goal is to elevate Kenya; this year, we’re targeting 16 percent. I aspire, with the grace of God, to leave it at 20 to 22 percent during my tenure,” Ruto asserted.

“It will be challenging; I’ll have to explain a lot, and there will be grievances, but I believe people will ultimately understand. We must learn to live within our means.”

Ruto delivered these remarks during discussions with Harvard Business School students on Africa’s trade and investment potential on Tuesday.

His comments come shortly after the unveiling of the proposed Finance Bill 2024.

Published on May 9, the Finance Bill, 2024 is slated for public participation thereafter.

The bill encompasses tax proposals aimed at bolstering revenue to fund the government’s ambitious projects.

One notable proposal is the introduction of a Motor Vehicle Tax, set at 2.5 percent of the vehicle’s value.

The minimum tax payable per vehicle upon insurance cover issuance is proposed at Sh5,000, with a maximum cap of Sh100,000.

Calculation of the tax will be based on factors such as make, model, engine capacity, and year of manufacture, as outlined in the bill.