Kenya’s taxation debate has become a tired annual ritual.
Every budget cycle, promises are made about
widening the tax bracket, yet the burden continues to fall disproportionately
on salaried workers whose taxes are deducted faithfully every month through the
PAYE system and other statutory deductions.
The government must now move beyond rhetoric and confront the structural imbalance that has overtaxed formal employees while leaving large sections of the economy outside the tax net.
The informal sector accounts for a significant share of Kenya’s economic activity, yet many businesses and traders remain beyond effective taxation.
Bringing this sector into the tax bracket does not necessarily mean punitive measures. Rather, it requires innovative mechanisms that encourage compliance through simplified tax systems, digital payment integration, incentives for registration and fair enforcement.
A broader tax base would ease pressure on the small pool of compliant taxpayers who have long shouldered the country’s revenue demands.
Equally important is the prudent use of public resources. Citizens are more willing to pay taxes when they can clearly see value for their money.
Kenya cannot continue collecting billions while public hospitals lack essential medicine, schools struggle with inadequate infrastructure and critical sectors of the economy remain underfunded.
Waste, corruption and inefficiency erode public trust and weaken economic confidence.
