NAIROBI, Kenya — President William Ruto reinforced his administration’s stance on tax compliance, urging that all eligible taxpayers meet their obligations as Kenya ramps up efforts to mobilize domestic revenue.
Speaking at the Taxpayers’ Day Awards held at State House, President Ruto stressed that equitable tax contributions are essential to Kenya’s development, adding that “every eligible taxpayer must contribute their fair share,” and that no individual or entity should evade taxes or benefit unfairly.
The President commended citizens for their growing tax compliance, noting that over eight million returns were filed by June 30, 2024, exceeding projections by 26 percent.
“Tax compliance is not only a legal and civic duty but also signifies our shared commitment to national transformation,” he remarked, attributing this milestone to the efforts of what he called “patriotic Kenyans.”
Despite these gains, Ruto acknowledged a significant gap between Kenya’s tax revenue and regional standards, with current collections at around 14 percent of GDP — well below the East African Community’s target of 25 percent.
“Our goal is to increase this to 22 percent of GDP over the next decade,” Ruto stated, adding that the government aims to elevate compliance from 70 percent to 90 percent by the 2026-27 fiscal year.
To meet these targets, Ruto underscored the importance of expanding Kenya’s tax base by targeting traditionally hard-to-tax sectors such as the informal economy and digital businesses.
“This will require innovation, collaboration, and determination,” he explained, emphasizing a partnership approach where the government enables taxpayers to thrive through effective policies and public investments.
A key aspect of this expansion strategy, he noted, includes incorporating previously untaxed sectors. In the 2023-24 fiscal year, the Tax Base Expansion Strategy added 1.2 million new taxpayers, generating Ksh24.6 billion in additional revenue.
Among other initiatives, the government has also introduced the Monthly Rental Income programme, supported by blockchain technology, to bring more landlords into the tax net.
Enhanced digital systems like the Electronic Tax Invoice Management System (eTIMS) have also played a role, reducing VAT fraud and securing Ksh314 billion from over 280,000 VAT-registered taxpayers.
Ruto expressed a commitment to sustaining this progress, emphasizing the need for equitable tax measures that ensure all eligible entities contribute to national development.
“To maintain fairness and equity in our revenue efforts, every eligible entity must pay,” he concluded, reiterating the administration’s pledge to bolster revenue collection through a balanced approach that both supports growth and strengthens accountability.
Speaking at the Taxpayers’ Day Awards held at State House, President Ruto stressed that equitable tax contributions are essential to Kenya’s development, adding that “every eligible taxpayer must contribute their fair share,” and that no individual or entity should evade taxes or benefit unfairly.
The President commended citizens for their growing tax compliance, noting that over eight million returns were filed by June 30, 2024, exceeding projections by 26 percent.
“Tax compliance is not only a legal and civic duty but also signifies our shared commitment to national transformation,” he remarked, attributing this milestone to the efforts of what he called “patriotic Kenyans.”
Despite these gains, Ruto acknowledged a significant gap between Kenya’s tax revenue and regional standards, with current collections at around 14 percent of GDP — well below the East African Community’s target of 25 percent.
“Our goal is to increase this to 22 percent of GDP over the next decade,” Ruto stated, adding that the government aims to elevate compliance from 70 percent to 90 percent by the 2026-27 fiscal year.
To meet these targets, Ruto underscored the importance of expanding Kenya’s tax base by targeting traditionally hard-to-tax sectors such as the informal economy and digital businesses.
“This will require innovation, collaboration, and determination,” he explained, emphasizing a partnership approach where the government enables taxpayers to thrive through effective policies and public investments.
A key aspect of this expansion strategy, he noted, includes incorporating previously untaxed sectors. In the 2023-24 fiscal year, the Tax Base Expansion Strategy added 1.2 million new taxpayers, generating Ksh24.6 billion in additional revenue.
Among other initiatives, the government has also introduced the Monthly Rental Income programme, supported by blockchain technology, to bring more landlords into the tax net.
Enhanced digital systems like the Electronic Tax Invoice Management System (eTIMS) have also played a role, reducing VAT fraud and securing Ksh314 billion from over 280,000 VAT-registered taxpayers.
Ruto expressed a commitment to sustaining this progress, emphasizing the need for equitable tax measures that ensure all eligible entities contribute to national development.
“To maintain fairness and equity in our revenue efforts, every eligible entity must pay,” he concluded, reiterating the administration’s pledge to bolster revenue collection through a balanced approach that both supports growth and strengthens accountability.
