No one will ever be happy to be taxed, it's a duty: UDA co-ordinator Ondiek

Kennedy Ondiek, the United Democratic Alliance (UDA) Party co-ordinator for South Nyanza, has dismissed criticism against President William Ruto over his plan to raise the country’s average tax rate from the current 14 per cent to 22 per cent by the end of his term in office.

Ruto on Tuesday expressed plans to increase the tax rate to 16 per cent by the end of 2024, saying he is aiming at between 20 and 22 per cent by the end of his tenure.

Acknowledging the economic burden Kenyans will have to bear to achieve this target, the president, who rose to power on the platform of lowering the cost of living, said he believes that the long-term benefits will justify the increased taxes.

“It's going to be difficult, I have a lot of explaining to do, people will complain but I know finally they will appreciate that the money we borrow from the World Bank is saving from other countries,” said Ruto.

His comments sparked ire from a section of Kenyans who already find Ruto’s tax regime, since he assumed office in September 2022, punitive.

Ondiek on Thursday however, defended the president, arguing that it is common for people to hate taxes although they must pay them as a civic duty.

“Our people are not comfortable but they will have to be taxed. It will not be fair and it cannot be fair because Kenyans like any other person in the world will never be happy being taxed. Even the president has said tax is not a punishment but a duty,” he told Citizen TV’s Daybreak program.

“For Kenyans in the lower class to enjoy being in the country, middle-class Kenyans must accept being taxed better for the poor to survive.”

He accused the opposition and media of fueling criticism of the 2024 Finance Bill by focusing only on the contentious clauses in the proposed law.

“If there is a problem with the taxation, let them come to public participation and say which parts are good or bad, or what tax should be reduced because it has to be taxed. Let them not say it should not be taxed, we should be taxed,” said Ondiek.

President Ruto’s administration seeks to squeeze more money from Kenyans’ pockets with the new bill, which among other things proposes an increase in the price of bread and a mandatory tax for all motor vehicle owners in the country to fund the 2024-2025 budget

Treasury has proposed to paste VAT on bread, which has been tax-exempt, with a duty of 16 per cent.

The bill also suggests eliminating VAT exemptions for several financial services, including issuing credit and debit cards, telegraphic money transfer services, and cheque handling, processing, clearing, and settlement including special clearance or cancellation of cheques.

President Ruto says the push is also part of ensuring that “we live within our means.”

“…Kenyans have been socialised to believe that they pay the highest taxes but empirical data shows that as of last year, our tax as a percentage of our revenues was 14 %. Our peers in the continent are on an average of between 22 and 25 per cent which means our taxes are way below those of our peers,” he said on Tuesday.