Kenya is going to be highly taxed country – Machakos Deputy Governor

By Robert Mutasi

Deputy Governor of Machakos Francis Mwangangi has warned that Kenya is going to be the most difficult country in doing business.

Mwangangi claims this will happen if the National Assembly will pass the proposed Finance Bill without making any changes.

Speaking during an interview with Citizen TV on May 11, 2023, the former lawmaker said Kenya will enter into the list of the most highly taxed countries in the world once the controversial bill is adopted.

"They wanted the bill to sail through the way it is. That effectively means we will be the highest taxing country in the world," claimed the deputy governor.

He has claimed that the move will affect business people and firms where the majority will decide to deter from running business in Kenya.

"It means corporates will have to sit and make a decision whether to continue doing business in Kenya or relocating to the neighbouring country," he added.

The Machakos Deputy Governor has further claimed that Kenya is not attracting many foreign investments with investors relocating to other countries.

According to Mwangangi, the 52 per cent taxation will worsen the situation of foreign investors.

He has urged the government to review the bill and make changes because the country is experiencing an economic challenge that has resulted in a high cost of living.

The deputy governor also has called upon the Kenya Kwanza government to engage the public and to discuss the bill before passing it. 

Some of the proposed taxes in the finance bill drafted by the Ministry of Treasury include a 3 per cent housing levy deduction and 16% of VAT on petroleum products from the current amount 8%.

The proposals have already been rejected by some of the religious leaders as well as legislators allied to the opposition.

However, Kenya Kwanza politicians have defended the proposals with Nandi Senator hinting that not even a comma will be changed in the Bill.