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.
The forum themed Strengthening Fiscal Policy for Economic Resilience and Equity brings together policy makers, tax administrators, economic experts and representatives from the private sector and civil society to foster dialogue, transparency and actionable insights into Kenya’s fiscal policies.
The KRA’s 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 said that the public participation must go beyond the submission of a memorandum and provide 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 I power,” he said.
Making 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 stated.
Nderitu emphasised on leveraging Kenya’s advanced digital payment systems to bring more people into the tax fold, ensuring fairness in contributions.
He also criticised outdated economic perceptions and urged investment in regions like Mandera and Wajir to utilise untapped potential in agriculture and livestock industries.
The Chair noted equity and collaboration as a central theme, asserting that without tax, there is no state.
Additionally, he stated that transparency and inclusivity are essential for progress since through collaboration, a country can be re-emerging as it moves forward, promising an open-door policy.
Insights from the 2024 Finance Bill emphasised 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 civilised society,” the forum noted and urged Kenyans to demand accountability and ensure that fiscal policies reflect the interests of all stakeholders, bridging gaps between businesses, citizens, and government.
By Jesee Otieno and Mark Muasa