Owalo promises to lower income tax, VAT if elected president in 2027

Former Cabinet Secretary and presidential hopeful Eliud Owalo has outlined an economic reform agenda centred on tax relief, stricter financial discipline and expanded regional development.

Speaking during an interview on Mulembe FM on Thursday, Owalo said easing the tax burden would be among the first steps under his administration.

“I will reduce income tax to 25 percent, reduce VAT from 16 percent to 12 percent and do away with digital tax completely,” he said.

Owalo argued that lowering key taxes could unlock business activity while allowing households to retain more of their income, ultimately injecting momentum into the broader economy.

On corruption, the long-time management consultant said tackling graft must remain a top priority, describing it as the single biggest obstacle to effective governance.

“The biggest problem ailing our governments is corruption. When I joined government as CS for ICT, there were only 350 services on eCitizen. I expanded them to 22,000, boosting revenue from Ksh.60 million to Ksh.1 billion a day. Digitalisation works,” Owalo said.

According to him, technology-driven systems can seal revenue leakages, improve transparency and restore public trust in government.

Beyond the national outlook, Owalo also mapped out development priorities for Western Kenya, a region he said holds significant untapped economic potential.

He identified the revival of the sugar sector as a key step toward stabilising incomes for farmers who depend on the industry.

Owalo also proposed reforms in the mining sector to ensure that communities where minerals are discovered benefit directly from the proceeds.

He further pointed to the strategic location of Busia and Malaba along the Northern Corridor, saying the two border towns could evolve into vibrant commercial hubs supported by logistics parks, cross-border markets and agro-processing industries.

Owalo added that a grain corridor strategy centred on Trans Nzoia and neighbouring counties, alongside a strengthened Lake Victoria blue economy, could expand agricultural output, fisheries and regional trade.

The proposals, he said, are aimed at building a more inclusive economy, promoting regional growth and strengthening public services across the country.