This archive report was first published on 18 October 2019.
On October 18, 2019, National Assembly Speaker Justin Muturi emphasized the importance of private sector players paying taxes to the government to finance its operations.
Speaking in Mombasa during the second annual roundtable meeting with the Kenya Private Sector Alliance (Kepsa), Muturi noted that the government has trained its sights on tax non-remittance due to the difficult task of financing its key operations.
The government has set a Sh3.02 trillion budget for the current financial year, and the Kenya Revenue Authority (KRA) is stepping up measures to collect revenue.
However, Muturi criticized Kepsa for delaying the passage of tax gains to Kenyans, saying that the private sector is quick to implement tax increases but drags its feet when it comes to decreases.
He also decried the low penetration of the insurance industry in the country, with penetration remaining below three percent compared to emerging economies such as South Africa, Egypt, and Nigeria.
Additionally, Muturi blamed Kepsa for the high level of unemployment in the country, saying that it has skewed and slanted requirements of the Employment Act to continue relying on contracted employees.
MP Amos Kimunya urged the government to consider reducing the corporate tax burden, which is currently at 30 percent.
