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Reduce taxes to maximise collection, Nyong'o tells Ruto

Nyong'o urges government to copy Kibaki's economic growth model to cushion Kenyans

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by The Star

Coast05 December 2023 - 15:01
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In Summary


  • Nyong'o said he was very surprised when he heard the Government announcing new plans to raise money to pay the foreign debt by increasing taxes.
  • He said this avalanche of taxation was not to be used for investment and wealth creation but for debt repayment.
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Kisumu Governor Anyang Nyong'o has urged the Executive and Parliament to exhaustively discuss the taxation issue.

Nyong'o said he was very surprised to hear the government's new plans to raise money to pay the foreign debt by increasing taxes.

"How, then, are we going to create wealth, employ our people, and then tax them at the same rate as before because they will now have money in their pockets?" the governor asked.

"I don't understand the government's voodoo economics! I wish "they could listen to the British Prime Minister, who has just praised his Chancellor of Exchequers tax cuts across the board to stimulate economic growth, wealth creation, and more employment generation in Great Britain."

Nyong'o noted that when they came to power in 2002 as the NARC government, they decided that their economic growth strategy would be based on wealth and employment creation.

He said they decided that their policy regarding taxation would be to simplify, reduce tax rate and broaden the tax base.

"Brings more people and businesses into the tax bracket. They will now have to pay less per unit, but with the government ending up getting much more money in the treasury. It worked," he said.

He noted that they didn't borrow any money to finance their first budget, which was much bigger than the one by the previous government.

"No hullabaloo at all. We let sleeping dogs lie and got to work. There was work to be done," he said.

"We did it! There was phenomenal economic growth within one year."

In just two years, Nyong'o noted that their budget hit the one trillion mark, more than half what they inherited from the previous regime. 

The governor said the lesson is simple, and the current regime should accept it.

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