Sharp Daily
No Result
View All Result
Saturday, June 28, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Opinion

OPINION: Unlocking Kenya’s economic potential through tax reforms

Faith Ndunda by Faith Ndunda
December 18, 2024
in Opinion
Reading Time: 2 mins read

Kenya has potential for growth and development. Kenya has however long struggled with a complex and often inefficient tax system that stifles businesses and limits government revenue collection. The recent push for tax reforms presents an opportunity to modify the balance between promoting economic growth and achieving fiscal sustainability. However, the success of these reforms depends on the government’s ability to address systemic inefficiencies and foster a culture of compliance.

One of the main issues is overreliance on indirect taxes, such as VAT, which disproportionately affect low-income earners. A more progressive tax system, targeting high-net-worth individuals and corporations, could ease the burden on the average citizen while generating sustainable revenue. Additionally, simplifying the tax code can reduce compliance costs for businesses, particularly small and medium enterprises (SMEs), which form the backbone of Kenya’s economy.

The complexity of Kenya’s tax code is a barrier to compliance and economic participation. Simplifying the tax structure by reducing the number of taxes and harmonizing tax rates can lower compliance costs for businesses and individuals. Streamlining the process can encourage more people to participate in the formal economy, thus broadening the tax base and increasing revenue without increasing tax rates.

Improving tax compliance is essential for generating sufficient revenue. This can be achieved through better enforcement mechanisms, technology-driven solutions, and public education. For instance, the Kenya Revenue Authority (KRA) can leverage data analytics and digital platforms through I-tax to monitor and improve tax collection. Educating the public on the importance of tax compliance and the direct benefits it brings to society, such as improved infrastructure and social services, can foster a culture of compliance.

RELATEDPOSTS

How the 2024 tax amendments benefit you with Cytonn pension products

March 14, 2025

Tax evasion and avoidance are significant challenges in Kenya. To address this, the government needs to implement stricter measures and close loopholes that allow for such practices. Introducing more robust audit systems and increasing penalties for non-compliance is key to handle tax evasion and fostering international cooperation to tackle cross-border tax evasion can significantly improve tax collection and fairness in the system.

In conclusion, tax reforms are crucial for unlocking Kenya’s economic potential. By simplifying the tax code, enhancing compliance, reducing evasion, supporting SMEs, and encouraging investment, Kenya can build a more robust, inclusive, and dynamic economy. These reforms not only increase revenue but also create a fairer and more prosperous society for all Kenyans.

Previous Post

OPINION: Kenya advances smart cities with Konza Technopolis leading the charge

Next Post

OPINION: Thriving in a changing investment landscape

Faith Ndunda

Faith Ndunda

Related Posts

Economy

What happened to president Ruto’s economic dream?

June 27, 2025
Opinion

Opinion: Populism feeds votes, not growth

June 27, 2025
Opinion

Unlocking the power of REITs: A path for retail investors

June 26, 2025
Opinion

How Kenyan banks can bridge the cybersecurity talent gap

June 25, 2025
Opinion

How companies can prevent administration through early intervention

June 25, 2025
Opinion

How dormant assets could be a hidden economic engine

June 25, 2025

LATEST STORIES

Private vs Public Pension Funds in Kenya

June 27, 2025

The mechanics of currency manipulation

June 27, 2025

Understanding how to access your pension savings in Kenya.

June 27, 2025

What happened to president Ruto’s economic dream?

June 27, 2025

Opinion: Populism feeds votes, not growth

June 27, 2025

Competitive advantages of small businesses

June 26, 2025

Opinion: Invest in sports for national prosperity

June 26, 2025

Ethiopia’s access to Eritrean ports is a game-changer for trade

June 26, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024