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Dear Kenyans, Here is why you Might Still be Taxed More

Kenyans decided that President William Ruto would be taking the blame for anything that goes down in this country and beyond. Vera Sidika breaks up with Brown Mauzo, we blame Ruto. Kourtney Kardashian calls her sister a witch, we know who to blame for that too. Taxes are over the roof, blame Ruto.

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Sadly, our dearest WSR the Fifth does not seem to give a “Mmmh” about it! If anything, Kenyans should begin praying for a miracle, because the President might even tax us for citizenship. During his first nine months in office, Ruto’s regime borrowed up to Ksh. 1.2 Trillion in debt. Yet, it is estimated that he is set to borrow up to Ksh. 3.6 Trillion in his first term.

Source| Instagram| Courtesy: Kenya_memess

According to the IMF, Kenya is at a high risk of debt distress. This means that Kenya is highly likely to be unable to pay its debts and debt restructuring will be mandatory. Nonetheless, the IMF added that Kenya spends more than half of its tax revenue on servicing liabilities. This is the gospel truth!

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Kenya and the IMF

Now, assuming we are already in debt distress, William Ruto will be left with no choice but to jump as high as the IMF orders. Failure to which, Kenya will be in default of its loans and that is a nightmare Kenyans cannot afford to have. Apparently, the IMF included some clauses in its report following its fifth review of our debt restructuring plan.

Technically, at this point, Ruto does not own us, Kenyans do not even own themselves. Kenyans belong to the IMF and President Ruto has to take instructions from it in order for Kenya to be eligible for subsequent loans. But we cannot blame our lenders, Kenya is on the verge of default and the IMF is desperately looking for ways to get its money back.

As a result, this is only the tip of the iceberg that is about to hit us next. No one will be spared. By June 2027, KRA is expected to increase its collections from Ksh. 2.19 Trillion to Ksh. 3.78 Trillion. Following that, here are some absurd value-added taxes that will be imposed on Kenyans.

VAT on Education Services

Educational services in Kenya have always been free of VAT in order to make education accessible. However, according to the government, this benefit of exemption is not uniform across all learners.

The government believes that some learning institutions provide services that are not directly related to education. Hence, if your child enjoys swimming and trips, then you will have to bear the cost of this “inequality.”

Source| Instagram| Courtesy: Kenya_memess

Is the government really out to make uniform the education sector? Or is it out to “punish” parents and learners whose sole offense is being privileged? It is also funny how the government classifies certain co-curriculum activities as “not being directly related” to education.

Someone should make clear what co-curriculum activities are directly related to. It should also be made clear how this country plans to nurture talents and abilities that will help us compete in the global market for even greater benefits.

VAT on Insurance Services

Kenyans will now have to think twice before taking out insurance. However, there won’t be any room for that as certain insurances are a must-have.

Imagine having to “pay the government” because you feel it is safe to secure your health or your child’s education. Now, all these would have made sense if the money collected from it were to be used to improve one’s insurance policies.

But no, according to the government, taxation of insurance services at the general rate will expand the tax bases and hence raise VAT revenue as a percentage of GDP. This is the same government that spends more than half of its tax revenue on servicing liabilities.

Minimum Tax

Dear Kenyans, because the government failed terribly at curbing tax evasion, everyone must suffer. Simply put, if the government stipulates that you should pay an annual tax of Ksh. 1 million, and your business generates Ksh. 200,000 that year, you shall see fire without smoke!

According to the government, each entity is expected to pay a minimum tax to facilitate the achievement of its objective. For instance, the government’s first and foremost objective was to go slow on borrowing. Newsflash! This government has borrowed more in nine months, than the previous one did in an entire year.

Source| Instagram| Courtesy: Kenya_memess

Nonetheless, Kenyans are still expected to facilitate the government in achieving its objectives. Another one of this government’s objectives was putting breaks on unbudgeted projects. Since Ruto’s tenure began, it appears as if every politician’s spouse is now getting an office. Surely, a project that the government just forgot to include in its budget.

Motor Vehicle Circulation Tax

Kenyans say, “Dunia simama nishuke” which loosely means that the world should stop revolving, so that we may alight. It feels better to drop into space and float into oblivion than be condemned to be on planet Earth and live in Kenya.

Aliens must also be wondering, what motor vehicle circulation tax is. If we continue like this, Ruto might just tax Kenyans for even being able to walk. Apparently, the government will assess the viability of introducing this particular tax in the medium term as a form of wealth tax.

This tax will be paid annually by motor vehicle owners at the point of acquiring an insurance cover. There will be a minimum tax amount payable by all motor vehicle owners in addition to a graduated amount based on the engine capacity of the vehicle.

A moment of silence for taxi owners. One can only imagine how many taxes they will have to pay to put food on their tables. It will even be worse for those operating using the Uber app as a Digital Service Tax is underway introduction.

Digital Service Tax

Tap tap nation on TikTok, it is time to tap your way into taxation. This fisherman’s net is fishing every fish in the sea. Beware of piranhas! Worldcoin, Binance, Youtube, Glovo, and Onlyfans. Name them all. None will be spared!

Source| Instagram| Courtesy: Kenya_memess

According to the government, in order to tax this sector effectively, they will;

  • Enhance the use of third-party information from banks and telcos to identify transactions in the digital sector.
  • Review the digital service tax by making it applicable to both residents and non-residents to enhance taxation of the digital economy and improve compliance among resident digital players.
  • Put in place measures to bring to the tax net digital content creators and digital assets.

Excise Duty on Alcohol Products

If you thought of turning to the bottle for consolation, think twice. No stone has been left unturned. Very soon, the likes of Leonard Omusula may not be able to a drink for Ksh. 60.

Currently, alcoholic products are being taxed based on consumer behavior, value of the product, volume of consumption, and alcohol content. But since Ruto is fixing the nation, his government has decided to increase further the taxes on alcoholic products.

Alcohol may now be twice or thrice as expensive because the government wants you to stop being able to afford it. Because alcohol poses higher health risks, the government will increase excise duty to discourage its consumption.

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KRA’s Blow

The wise men once said, hope for the best but prepare for the worst. Well, the time has come. However, if you thought you might dodge this web, here is a parting shot.

The government will amend the Data Protection Act to exempt the Kenya Revenue Authority from the provisions of the Act for ease of information access.

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Now, as you ease into your soft girl era, or into your “ni God” (it is God) era, remember, not only is The Lord, but also KRA watching you. KRA is now omnipotent, omnipresent and omniscient. It is also very “omnideadly” and “omniready” to catch tax evaders.

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