This archive report was first published on 7 November 2019.
Kenya's National Treasury is facing a widening budget deficit, with the 2019-2020 budget deficit increasing from 5.9% to 6.2% due to revenue shortfalls, as reported by Bloomberg on November 5, 2019.
President Uhuru Kenyatta has proposed a draft bill that would require tax evasion defendants to pay taxes while their cases are still in court, citing at least KSh 300 billion held up in about 1,000 legal disputes.
According to the President, most of these cases have stayed for more than two years, and the draft bill aims to address this issue by providing an out-of-court process to curb tax evasion and save time.
“Do not punish people who have not committed a crime, especially if they did not evade paying taxes to steal. Engage them first before taking them to court, it is easier and not as time-consuming as court processes,” Kenyatta said.
The draft bill is expected to be presented in the next four months.
