Meg Whitman, the US Ambassador to Kenya, has proposed that the government prioritize broadening the tax base and streamlining the tax code as the most effective path for revamping the country’s tax system.
Her recommendations come ahead of President William Ruto’s upcoming state visit to the United States, the first by an African leader since 2008.
In an exclusive interview with Citizen TV’s Jeff Koinange, the billionaire former CEO of Hewlett-Packard and eBay outlined two key strategies for increasing tax revenues without overburdening existing taxpayers. “Don’t just target the same taxpayers with higher rates, bring more people into the tax net,” Ms. Whitman said, emphasizing the need to broaden the tax base.
Central to this approach is the creation of “good paying jobs” that would bring more Kenyans into the formal economy and enable them to contribute to the tax system.
“You have to expand the number of people, not just going after the same people,” the Ambassador said.
Ms. Whitman’s second recommendation focused on simplifying Kenya’s tax code, which she described as overly complex, akin to the US system. “Simpler is better,” she advised, advocating for a tax regime that is “understandable and manageable by average Kenyans.”
The Ambassador’s proposals coincide with a pivotal moment in US-Kenya relations, as President Ruto prepares for his state visit to Washington, D.C., expected to yield significant trade and investment deals, as well as agreements on regional peace and security. The renewal of the African Growth and Opportunity Act (AGOA), which allows duty-free access for Kenyan exports to the US, is also on the agenda.
Ms. Whitman emphasized the strong 60-year partnership between the two countries and America’s aim to make competitive offerings to Kenya and the rest of Africa, without forcing choices between superpowers. “Our objective is how can we make competitive offerings, not forcing people to choose between you know one superpower versus another,” she said.
The Ambassador also lauded Kenya’s potential to become the “Singapore of Africa,” leveraging its burgeoning tech capabilities in the “Silicon Savannah” and attracting foreign direct investment to drive economic growth. However, she stressed that corruption remains a major obstacle for Kenya in reaching its full potential, urging accountability through the rule of law.
On regional security, Ms. Whitman commended Kenya’s decision to contribute police officers to a UN peacekeeping mission in Haiti, describing it as a “noble goal” to help the Caribbean nation restore stability.