The Fight Inequality Alliance Kenya (FIA Kenya) is advocating for the elimination of tax havens used by rich Kenyans to conceal the gains acquired from corruption.
The lobby says that the government should remove tax exemptions from items used mainly by the rich – for example, VAT exemptions for helicopter and small aircraft
Additionally, the alliance is calling for the annulment of foreign debt and increased investment in public services such as education, health, and water, and a heightened tax burden on the wealthy, with no exemptions.
Emphasizing the present era of inequality, the alliance contends that the existing economic system primarily benefits the privileged minority at the expense of the majority.
“The government must ensure that corporates pay taxes from capital gains and zero-rate goods and services that are disproportionately used by the poorest,” said Fight Inequality Alliance Pan Africa regional coordinator, Njoki Njehu,
The Finance Act, of 2023, exempted 16 percent VAT on helicopter and small aircraft spare parts in a love the government said was to spur growth in the aviation sector.
In the country, most of the helicopters are owned by the rich including politicians, and the alliance said it is unfair to exempt them from paying the tax.
On funding of public services on education for instance, it demanded the government to prioritise access and affordability of formal and informal education for all Kenyans regardless of social economics status.
“Merit and performance should determine who gets to pursue higher education and training not ability pay,” said Njoroge.
The alliance said instead of exempting taxation on helicopter and small aircraft spare parts, it should do so on books, and food items among other essential goods and services that affect lives of poor Kenyans who are the majority.
On health, the alliance demanded that the universal healthcare initiatives at National and County levels focus on access, quality, prevention and affordability to reduce the more often than not financially devastating cost of healthcare for families.
The alliance demanded that the government should stop following the common practices of commercialising and or privatising water.
“The Covid-19 pandemic highlighted inequalities – an economic justice issue for the poor and a gender justice issue for women, who are often the same- poor women bear the brunt of water injustice. It affects livelihoods, health, nutrition and is a huge part of women’s unpaid care work,” said Njeri Njoroge, FIA Kenya member from Nakuru County.
On cancelling the debt, they said a debt is a tool of control and domination and demanded the government to make public the details and conditions of loans acquired, reject austerity measures, harmful tax incentives and seek debt rescheduling.
“High levels of debt are harmful because a large portion of government funds is spent on servicing debt instead of on development and essential services for the benefit of Kenyans,” said Kimani Nyoike, FIA Kenya, national coordinator.
On abolishing tax heavens, they said they pose an immediate danger and threat since they are a safe harbour for our looted money.
“The looted funds are a theft of quality healthcare, jobs, and livelihoods, education, infrastructure, environment protection, natural resources and more from Kenyan and people’s across Africa,” said Joab Okanda, senior advisor at Christian Aid.
According to United Nations Conference on Trade and Development (UNCTAD) Economic Development in Africa Report 2020 indicated that every year, the country loses an estimated USD 88.6billion (Sh14.3 trillion), equivalent to 3.7 percent of Africa’s Growth Domestic Product(GDP), thus leaving the continent as illicit capital fight through corruption by both multinational corporations and wealthy individuals.