Kenya needs consistent tax policy, says Whitman

US Ambassador Meg Whitman has said Kenya needs a consistent tax policy to create a business-friendly environment.

Speaking at the Devolution Conference in Eldoret yesterday, Whitman said President William Ruto's administration has made great strides and is committed to building a business-friendly environment, but more still needs to be done.

Whitman said Kenya needs to ensure its tax system is consistent, transparent and fairly administered.

She said this would help attract and retain foreign direct investments into the country and accelerate economic development.

"The tax rates don't need to be the lowest, they need to be the most consistent," Whitman said.

She said the recently enacted Finance Act 2023 will help lure investors.

"A lot of work has to be done, but the Finance Bill had many changes that will make Kenya's tax policy more consistent and, therefore, more bankable by foreign direct investments."

Whitman said Kenya needs to address corruption. She said this is a thorny issue, and efforts must be made to tackle it.

The ambassador commended President Ruto for cracking the whip on corruption.

"Corruption leads to misuse of public resources, slows economic growth and job creation and damages investment climate, as well as undermining equal participation," the ambassador said.

Whitman said among other questions she gets from investors about Kenya is the country's debt situation and cargo clearance costs, which remain high. 

She reiterated her position that the 2022 General Election was the most free and credible in the country.

Whitman said the affirmation by the Supreme Court was a testimony the election had been held in a transparent manner.

“I arrived in Kenya days before the General Election. What I witnessed was nothing short of remarkable,” she said amidst cheers and claps from the crowd, which included President William Ruto.

The election, she said, has even been termed by many commentators and analysts as the "freest, fairest and most credible election in Kenyan history".

“The election was observed by local and international election organisations, and the results were upheld by the Kenyan Supreme Court, and power was transferred orderly and peacefully at the time,” she said.

In April, while addressing American businessmen, the envoy said Kenya held the the most transparent and democratic election.

Azimio leader Raila Odinga, however, took issue with it, accusing the US envoy of allegedly taking sides and sacrificing the push for electoral justice.

Whitman urged foreign investors to invest in Kenya, saying the country has the most stable democracy in Africa.

Kenya, she said, has a market of about 500 million consumers and also acts as a regional financial and logistical hub.

"Kenya is the gateway to East Africa. Eighty per cent of trade passes through the Mombasa port, with JKIA being the busiest airport in East Africa," she said.