This archive report was first published on 19 October 2019.
Published on October 19, 2019, National Assembly Speaker Justin Muturi emphasized the importance of the private sector paying taxes to enable the government 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, a move that has seen owners of organizations such as Keroche Breweries and Wow Beverages Limited huddled in court over tax evasion claims.
"Transfer pricing is a huge challenge that has inhibited economic growth by denying this country revenue through tax evasion by multinationals. It is high time that this issue was looked at as our revenue basket continues to leak," Muturi said.
However, Kipipiri MP Amos Kimunya urged the government to consider reducing the corporate tax burden, which is currently at 30 percent.
"Tax evasion could be high because we are stuck at a 30 percent corporate tax while the world is scaling it down," Kimunya said.
Muturi also took Kepsa to task for delaying the passage of tax gains to Kenyans, saying that the private sector should ensure tax gains are passed as fast and enjoyed by the consumers.
Furthermore, Muturi decried the low penetration of the insurance industry in the country, noting that its penetration remains 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 it has skewed and slanted requirements of the Employment Act so as to continue relying on contracted employees.
