President William Ruto’s implementation of new taxes and increases in existing ones has sparked anger and dissatisfaction among many Kenyans. This article explores the impact of these tax policies on the economy, businesses, and individuals. It discusses the reasons behind Ruto’s decision to raise taxes, the public’s perception of these policies, and the consequences faced by various sectors of society.
The article highlights the growing frustration among Kenyans who feel that Ruto has betrayed his promise to champion the interests of struggling individuals, or “hustlers”. Many believe that the tax burden falls disproportionately on ordinary citizens, while government officials indulge in wasteful spending. This perception was reinforced when the Controller of Budget raised concerns about high taxes and “wasteful” government spending on travel.
The effects on the economy are evident, with a significant number of private-sector jobs lost due to the rising operating costs caused by increased taxes. Businesses, particularly small and medium-sized enterprises, have been heavily burdened by these taxes, leading to closures and downsizing. The article discusses real-life accounts from business owners who have been forced to lay off employees and scale down their operations due to the suffocating tax hikes.
The conduct of tax collectors has also been a matter of concern, with reports of harassment and intimidation. Business owners fear that the heavy-handed approach may drive them to conceal their earnings and resort to cash transactions, resulting in decreased transparency and tax compliance. The article highlights some of the strategies employed by individuals to avoid paying taxes, such as redirecting mobile money payments to personal accounts.
The negative impact extends beyond businesses to other sectors, including tourism. Higher taxes have reduced people’s ability to spend on travel and leisure activities, crippling the tourism sector. The decline in the value of the Kenyan shilling has further exacerbated the situation, making it difficult for tour operators to plan and compete with neighboring countries offering better deals.
Despite these challenges, the Kenya Revenue Authority reports upward revenue growth, albeit below the annual target. The article also mentions the government’s struggle to fund civil servant salaries and constituency projects due to a shortage of funds. This indicates potential negative implications for development and public services.
In conclusion, President Ruto’s tax policies have generated widespread discontent among Kenyans. The burden falls heavily on individuals and businesses, leading to job losses, closures, and downsizing. The conduct of tax collectors has also raised concerns about harassment and reduced transparency. The tourism sector has suffered a significant blow, and the government faces challenges in meeting its financial obligations. Kenyans are hopeful that Ruto will reconsider these tax policies and provide relief to the struggling masses.
