Ruto: Kenya can collect Sh250b more in taxes annually by digitising
Kenya can collect up to 40 per cent more in taxes if the government digitises all its tax collection avenues.
This was revealed during a forum between Kenya Private Sector Alliance (Kepsa) and Deputy President William Ruto on the ongoing engagements with presidential candidates ahead of the 2022 General Election with an aim of presenting the Private Sector Economic Manifesto and discussing the envisioned economic agenda for Kenya.
He said that the government can collect another Sh250 billion every year just by digitising their collection of taxes.
“We should be able to expand the market for everybody and ease the chasing of taxes from a few people by making sure that we have a bigger base,” said Ruto.
According to the DP Kenya should be collecting between Sh2.5 and Sh2.8 trillion instead in taxes instead of the Sh1.7 billion current collections. This, he said will reduce the government appetite for foreign debt and make a conducive environment for local enterprises to thrive.
“In my opinion, we can reduce the appetite for loans and begin the journey to build and run our affairs more on taxes and less on borrowing,” added Ruto.
In his transformation agenda to the private sector players, the DP said that a safe and accommodating taxation environment is pivotal to the development of the private sector promising to reform the National Health Insurance Fund Scheme.
“Building good markets, ensuring there’s law protecting businesses will lead to an increase in income per day. We will allocate Sh50 billion in the Micro, Small and Medium Enterprises if and/or when elected President.”
Carole Kariuki, the chief executive officer of Kepsa called for a continuous investment in the security sector to facilitate more people centered approaches and adoption of digital technologies within security and judicial processes to increase effectiveness and timely delivery of justice leading to enhanced
“Kepsa will foster a globally competitive business environment that addresses both the cost of starting a business and the growth of enterprises,” said Kariuki.
She says government should engage SMEs directly in projects such as roads to enhance jobs and revenue creation. Public Service Ministry to monitor and report on implementation of the local content policy.