- Christian Aid Pan Africa senior advisor Joab Okanda urged the government to source alternative methods to create financial equality.
- Unlike estate tax, which is levied on the value—and comes out—of the decedent's estate, an inheritance tax is levied on the value of the inheritance.
A number of human rights defenders now want the government to consider increasing taxes on rich people. https://bit.ly/3KmzMDq
Several human rights defenders now want the government to consider increasing taxes on rich people.
The lobby group wants the state to add three per cent of tax paid by rich people.
They say a lot of inequality has been witnessed in the past few months especially during the revival of the economy.
Christian Aid Pan Africa senior advisor Joab Okanda urged the government to source alternative methods to create financial equality.
Speaking during a press conference on Tuesday, Okanda said the benefits of growth are not being shared equally.
“We believe that a tax on the richest in the society will go a long way in building a more inclusive, cohesive and sustainable Kenya,” Okanda said.
He added that this would put Kenyans lives above corporate interests.
“In this country, some time back aircraft and helicopters spare parts were not taxed, it is the richest in our community who use these facilities,” he said.
He also faulted the government for failing to tax inherited property that is owned by the rich.
“The rich use the same wealth to capture our politics, economy and to continue robbing us our dignity, it is unacceptable,” he added.
Inheritance tax is a levy on assets inherited from a deceased person.
Unlike estate tax, which is levied on the value—and comes out—of the decedent's estate, an inheritance tax is levied on the value of the inheritance.
It is the beneficiary who pays for inheritance tax.
In Kenya, If the deceased person did not have a spouse or child, the estate goes first to the father, then to the mother if the father is deceased.
If both parents are deceased, it goes to the brothers and sisters if there are any, then to their children.
The number of superrich individuals in Kenya is one of the fastest-growing in the world.
It is predicted that the number of millionaires in Kenya will grow by 80% over the next 10 years.
New data released by Fight Inequality Alliance, the Institute for Policy Studies, Oxfam, and Patriotic Millionaires shows that an annual wealth tax applied to the wealth of multi-millionaires and billionaires of Kenya would raise approximately $900 million a year.
From the data, this is enough to increase the government health budget by 36% or reduce households’ out of pocket health costs.