Nairobi: Institute of Public Finance (IPF) and stakeholders Friday held a forum to evaluate the impact of the recently enacted Tax Laws Amendment Act 2024 with the aim of shaping tax policies that are equitable and predictable to Kenya’s economy, businesses and provide feedback on areas of improvement.
According to Kenya News Agency, the forum, themed “Strengthening Fiscal Policy for Economic Resilience and Equity,” brought together policy makers, tax administrators, economic experts, and representatives from the private sector and civil society. The event aimed to foster dialogue, transparency, and actionable insights into Kenya’s fiscal policies. The Kenya Revenue Authority’s (KRA) ambitious agenda marks a new chapter in Kenya’s tax administration, aiming to balance efficiency, fairness, and national development.
Speaking at the event, the Institute of Public Finance Chief Executive Officer, James Muraguri, emphasized that public participation must extend beyond mere submission of memoranda. He advocated for meaningful opportunities for citizens, businesses, and civil society to voice their perspectives and influence policy decisions. ‘The 2024 Finance Bill development process taught us all an important lesson. Citizens care, businesses care about government policies, because we as citizens are heavily impacted by the decisions of those in power,’ he stated.
In his remarks, the newly appointed Kenya Revenue Authority (KRA) Chair, Nderitu Murithi, outlined a transformative vision to make tax compliance more accessible, equitable, and technology-driven. While acknowledging the challenges in his role, he underscored the importance of Value Added Tax (VAT) auto-population to simplify the taxpayer experience, noting that over 52,000 VAT returns had been successfully filed within 24 hours. ‘We want to ensure the system works for everyone, I urge taxpayers facing difficulties to reach out so we can address specific challenges,’ he added.
Nderitu further emphasized leveraging Kenya’s advanced digital payment systems to bring more people into the tax fold, ensuring fairness in contributions. He criticized outdated economic perceptions and urged investment in regions like Mandera and Wajir to utilize untapped potential in agriculture and livestock industries. The Chair noted equity and collaboration as central themes, asserting that without tax, there is no state. He also stated that transparency and inclusivity are essential for progress, promising an open-door policy.
Insights from the 2024 Finance Bill underscored the need for tax systems to adequately fund essential services, particularly for vulnerable populations, while fostering inclusivity in fiscal decisions. Participants called for greater dialogue between citizens and policymakers ahead of the Finance Bill 2025. ‘Taxes are the price we pay for a civilized society,’ the forum noted, urging Kenyans to demand accountability and ensure that fiscal policies reflect the interests of all stakeholders, bridging gaps between businesses, citizens, and government.