NAIROBI, Kenya — 2027 presidential aspirant Eliud Owalo has unveiled a sweeping tax reform agenda, proposing sharp reductions in key levies to ease the cost of living and stimulate economic growth, particularly in the digital sector.
Speaking during an interview on Capital FM’s Capital in the Morning show, Owalo said his administration would cut income tax from 35pc to 20pc if elected, arguing that the move would increase disposable income and boost household spending.
He also pledged to lower Value Added Tax (VAT) from 16pc to 10pc, describing VAT as a major contributor to the high cost of living.
“VAT, which is a major contributor towards the high cost of living index, I’m going to reduce it instantly from 16pc to 10pc,” Owalo said.
In a significant policy shift, Owalo further proposed abolishing digital taxes, positioning the move as a catalyst for youth empowerment and innovation.
He said the digital economy holds vast potential for job creation through online work, entrepreneurship, and skills development.
“The digital space is one area where we have enormous potential to enable our youth to exploit opportunities, whether through digital jobs or entrepreneurship,” he said.
Owalo argued that revenue losses from tax cuts could be offset through improved efficiency and technology-driven systems aimed at sealing leakages and enhancing transparency in public finance management.
He maintained that digitisation of government services would strengthen compliance and restore public trust.
The former ICT Cabinet Secretary and Deputy Chief of Staff also dismissed claims that his presidential bid is intended to split votes or serve external political interests.
“If I wanted to work towards the 2027 elections from within government, why would I walk out of the upper echelons and work from outside? It just doesn’t make sense,” he said.
Owalo’s proposals come at a time when Kenya faces mounting public pressure over high taxation and rising living costs, with policymakers grappling to balance revenue generation and economic relief measures.
