Time to reduce CIT (Corporate Income Tax) and focus on VAT & PAYE

[RV Pundit]

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We charge some highest corporate taxes at 30% - against global average of 20% - Mauritus are doing 15% - Europe  19% - Asia 21%.

If we reduce the CIT to even 15% - the impact will be loss of 90B dollars - but we might see more FDI coming in?

Most companies are choosing to incorporate in Mauritius because of this reason.


Corporate tax received by KRA amounted to KES
198.24 bn in 2021 out of which KES 50.69 bn was
contributed by the banking sector, representing a
25.57% share. This is compared to KES 41.28 bn
collected in 2020 which was a 24.20% share of the
total corporate tax received by KRA. The increase in
2021 compared to 2020 was largely driven by increase
in profits with the profit before tax of the banks
increasing by 85.17% in 2021 relative to 2020.

[hk]

We charge some highest corporate taxes at 30% - against global average of 20% - Mauritus are doing 15% - Europe  19% - Asia 21%.

If we reduce the CIT to even 15% - the impact will be loss of 90B dollars - but we might see more FDI coming in?

Most companies are choosing to incorporate in Mauritius because of this reason.


Corporate tax received by KRA amounted to KES
198.24 bn in 2021 out of which KES 50.69 bn was
contributed by the banking sector, representing a
25.57% share. This is compared to KES 41.28 bn
collected in 2020 which was a 24.20% share of the
total corporate tax received by KRA. The increase in
2021 compared to 2020 was largely driven by increase
in profits with the profit before tax of the banks
increasing by 85.17% in 2021 relative to 2020.

This is one of the reasons why midsize smses aren't formalizing into corporations. The high taxes and compliance issues are big factors. Paye needs to be reduced or the tax brackets reviewed its the reason why Kenya cant attract sweatshop type of jobs. Vat also need be reduced to about 10% to encourage consumption and overall lower cost of living. More importantly vat tax refund affects small manufacturers greatly. Claiming vat refund from kra is herculean task affecting smes working capital. Then there's the pesky excise duty tax that kra arbitrary raises all the time. This need to be lowered and less capricious.

[RV Pundit]

Yes if we focus on VAT..at 10 percent if fully collected is 1 trillion kshs..in 13 trillion economy. Something to improve compliance is needed.CIT is too high.Minimum wages need to go..or  be set very low outside cities

[RV Kirgit]

The size of government must be downsized and corruption reduced. Otherwise revenue money collected goes into black holes.

Secondly, something should be done to reduce the undue influence from kenyans in USA and the Americans. We are copying Americans systems without knowing that USA is a special country for some reason.

[KenyanPlato]

pundit, you are all over the place. chill, watch and learn. Kenya is under imf receivership. Ruto has no economic policy. his policies are being drafted by imf and forces on him

[RV Pundit]

IMF will exit shortly. We are on final review - end of 3yr program. Then Ndii take over.

pundit, you are all over the place. chill, watch and learn. Kenya is under imf receivership. Ruto has no economic policy. his policies are being drafted by imf and forces on him

[KenyanPlato]

IMF will exit shortly. We are on final review - end of 3yr program. Then Ndii take over.

pundit, you are all over the place. chill, watch and learn. Kenya is under imf receivership. Ruto has no economic policy. his policies are being drafted by imf and forces on him

lol keep on dreaming. imf is going to be around for a longtime to come. kenyan's economy is not changing drastically to change the fortunes of the hustlers. they will remain just a voting group with no economic benefits. Western capital is about to grab the Kenyan economy and create a bigger market for its goods and services. Capital flight is about to go on steroids. I expect China to come in after imf and try to reclaim what is left

[RV Pundit]

IMF come only if we have debt problem.
Ndii will run the broke economy for 2yrs fixing ufool mess with Oxbridge theories
Then Ruto will take over in last 2-3yrs and launch big projects with an eye for re-election - fiscal discipline be damned.
In meantime - Ruto will be busy selling kenya gov assets - hapo ndio iko pesa.
Broke economy is Ndii biashara...feeding and milking the zebus
Ruto will run privatization ...selling the zebus esp the bulls.

lol keep on dreaming. imf is going to be around for a longtime to come. kenyan's economy is not changing drastically to change the fortunes of the hustlers. they will remain just a voting group with no economic benefits. Western capital is about to grab the Kenyan economy and create a bigger market for its goods and services. Capital flight is about to go on steroids. I expect China to come in after imf and try to reclaim what is left