Every eligible entity must contribute to Kenya’s tax revenue - Ruto

President William Ruto has maintained his stance on the importance of tax compliance for all eligible entities, reaffirming his commitment to domestic revenue mobilisation.

Speaking during the Tax Payers' Day awards ceremony at State House, Nairobi on Friday, Ruto declared that every taxpayer must contribute their fair share to support national development and public services, ensuring that no one evades their duty or benefits unfairly from the contributions of others.

Ruto praised "patriotic Kenyans" for their dedication, noting that they filed eight million tax returns by June 30, 2024, surpassing the target by 26 per cent.

"Tax compliance is not only a legal and civic duty but also signifies our shared commitment to contribute towards national transformation," he said.

Despite this progress, the President acknowledged that Kenya's revenue collection remains significantly below the East African Community target of 25 per cent of GDP.

"Our aim is to raise revenue from 14 per cent to 22 per cent of GDP within the next decade and to promote compliance from 70 per cent to 90 per cent by 2026-27," Ruto said.

To achieve these goals, the President highlighted the need to expand the tax base by focusing on hard-to-tax sectors such as the informal economy and digital businesses.

He stressed that this effort will require collaboration, innovation, and determination.

"The partnership between government and taxpayers must be based on a dynamic of reciprocity," Ruto said.

"The government must use effective policies and efficient public investments to enable taxpayers to thrive and create jobs and wealth."

The President also said that the Tax Base Expansion Strategy has already generated Sh24.6 billion in the Financial Year 2023-2024, and added 1.2 million new taxpayers to the national revenue base.

He noted successes in bringing landlords into the tax net through initiatives like the Blockchain Management System and the Monthly Rental Income programme.

Additionally, Ruto pointed out that enhanced systems, including the Electronic Tax Invoice Management System, have reduced VAT fraud, allowing the government to mobilise Sh314 billion from over 280,663 VAT-registered taxpayers.

"To sustain this progress and promote fairness, we must enhance the equity and effectiveness of tax revenue mobilisation. This means that our tax measures must be fair, and every eligible entity must pay," Ruto said.

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