Informal sector is useless doesn't reduce poverty or increase productivity

[Nefertiti]

Yep. Banning cash would not only nail the cottage or slum and construction industries, it would also net most of the black market. Once you criminalize cash - a few savvy thieves will adopt M-pesa or bitcoin laundering - but the black will gray with the cash trail. Taxes will be paid - which needs no incentive - and GoK could cap amounts due for taxation for Mama Mbogas and shoeshiners. Even persuade the telcos or banks to waive such fees on low transactions. Anything above 1K a day should be taxed. The data of course comes in handy for credit rating, planning and innovative folks will come up with new business serving informal - just as they now serve say the diaspora. Cause remittances are well tracked. Seal the tax loopholes in Kenya and the revenues would more than double.

[RV Pundit]

Yes banning cash and aggressive netting of everyone in tax platforms even if they are paying zero is way to go.In any case Kenya tax is self assessment..kra only come in if there is a dispute.Mzungu when he was around had hut tax that forced mwafrika to go looking for job to pay.Maybe we need the same.

[RV Pundit]

Mzungu MPS in 1920 were better our mpigs now https://api.parliament.uk/historic-hansard/lords/1922/may/10/taxation-in-kenya-colony-and-uganda

[Nefertiti]

Mzungu MPS in 1920 were better our mpigs now https://api.parliament.uk/historic-hansard/lords/1922/may/10/taxation-in-kenya-colony-and-uganda

Yeah but mzungu had slave labor - taxing that is inhuman not efficiency. Transaction fees and VAT is fair because the rich obviously spend more. A jobless person will have few transactions or low spend - but noone can escape traceable spending in cashless system. Companies spend too. PAYE is a very unfair tax method. Employed folks arw taxed 50%+ . I think the 25% of bigger formal GDP or such flat VAT/fees can be hit easy with cashless. It a digital dividend.