The government has said that the proposed new tax laws are aimed at fostering sustainable growth, safeguarding social equity and improving Kenyans quality of life without increasing the burden on citizens.
Government Spokesperson Dr. Isaac Mwaura noted that in the past two years, the governments’ agenda has been prioritizing job creation, income distribution and economic stability, which aims to drive its commitment in achieving an economic environment that allows all Kenyans to thrive.
“The government is committed to implementing policies that not only address current fiscal needs, but also aim to strengthen the nation’s economic foundation for the future. With rising public debt, we must implement balanced measures to ensure a sustainable public debt position. Our goal is to develop an economy and align it to rely more on robust domestic revenue generation than on foreign debt,” said Mwaura.
Speaking Monday during a press briefing, Mwaura said that the government will allocate more resources to critical projects that benefit citizens, hence the need for the proposed tax reforms, aimed at bringing a fair tax policy including measures for tax amnesty.
“The National Treasury and related government bodies have introduced amendments to existing laws, in line with the constitution to ensure a balanced tax system. These changes are designed to support better tax administration and compliance, ensuring that every citizen pays a fair share,” he said.
Mwaura stated that several legislative amendments, including the Tax Laws (Amendment) Bill, 2024, the Tax Procedures (Amendment) Bill,2024, and other related bills, have been prepared to address the growing fiscal demands and ensure efficient revenue collection.
He highlighted the benefits of the Tax Law Amendments including enhancing county government funding in order to avert potential service delivery challenges, Social and Economic Well-being that aims at improving the economic welfare of all Kenyans, equity and Fairness in Provisions for justified tax amnesty and adjustments to tax expenditures and improved tax compliances that combat tax evasion for the nation’s growth.
Further, he added that the digital economy growth will expand the digital tax base.
Mwaura emphasized on the benefits for Kenyan employees and businesses including improved employee benefits, support for pension and retirement funds, since deductions for registered pension or retirement contributions will benefit both individuals and employers.
He explained that other benefits for employees and business include fair and competitive business environment through business law amendments through the Ministry of Trade, Investments and Industry, which has introduced amendments to enhance the ease of doing business, attract investments, and improve export performance, Local Manufacturing and Procurement which mandates that at least 40 percent of goods and services procured by the government to come from local manufacturers, spurring economic growth, job creation.
“These amendments are part of a larger plan to stabilize the Kenyan economy. Our debt currently stands at 68 percent of the Gross Domestic Product (GDP), we aim to reduce reliance on foreign debt, align with global best practices, and secure financial stability for future generations,” he said.
Mwaura underscored the government’s commitment to build public trust and ensure that all tax revenues uplifts Kenyans through its efficient and transparent use that enhance service delivery in sectors including health, housing among others.
He stated that the government is pleased to report the continued progress of the Social Health Authority (SHA) in advancing accessible healthcare for all Kenyans since over 14 million Kenyans have registered under this restructured health system, experiencing greater access to quality medical care at no out-of-pocket cost.
Mwaura noted that public hospitals across counties, including Makueni, Nakuru, and Kisumu, as well as at major maternal hospitals such as Pumwani and Mama Lucy, patients and healthcare providers are witnessing the positive impact of SHA.
“Individuals with chronic conditions like cancer, diabetes, and kidney disease are now able to receive free treatment at SHA-compliant facilities, alleviating financial burdens and enhancing quality of life,” he said.
Mwaura urged the private healthcare facilities to collaborate with the public hospitals by registering with SHA in order to reduce the high demand for services of Kenyans across the nation, adding that SHA remains committed to ensuring every Kenyan has access to essential healthcare services.
On the agricultural sector, he noted that the sector is a key pillar in the government’s agenda, which is focused on increasing farmers’ profit margins, stabilizing essential goods like maize flour for consumers and reinforce the country’s national food reserve, which currently stands at 30 percent of the target level.
“Through the National Cereals and Produce Board (NCPB), the government has set maize prices at Sh3,500 per 90 Kg bag to stabilize the maize market, ensure fair compensation for farmers and protect livelihoods in the agricultural sector,” he said.
By Sharon Atieno
