President Ruto's historic White House visit overshadowed by proposed tax hike backlash
Kenya’s president William Ruto is scheduled to be hosted by US president Joe Biden on May 29th, making him the second African president, but anticipation for this historic visit has been marred by discontent by Kenyans over proposed tax increases and rising living costs under Ruto's administration.
Since assuming office in 2022, Ruto has diligently elevated his international profile, particularly through advocacy on climate issues and calls for reform within global financial institutions, including hosting the inaugural Africa Climate Summit in 2023, Semafor reports.
However, the Ruto government's proposed tax adjustments including plans to eliminate VAT exemptions on essential items like bread, imposing higher taxes on mobile money transfers, and introducing an annual tax based on the value of motor vehicles have sparked debate across local media platforms and online forums, curating negative reviews for the president.
Addressing a group of Harvard Business School students at the state house, President Ruto reiterated his administration's commitment to bolstering tax revenues, despite the potential burden it may place on Kenyan citizens. He outlined ambitious targets, aiming to elevate tax revenues as a percentage of the Gross Domestic Product (GDP) from the current 14% to 22%.
“My drive is to push Kenya, possibly to 16 per cent this year. I want to leave it at 20 and 22 per cent over my term. It is going to be difficult, I have a lot of explaining to do, people will complain but I know that they will appreciate it,” he is quoted as saying.
Dismissing assertions of over-taxation, Ruto challenged prevailing perceptions by citing empirical data. "Kenyans have been socialised to believe that they pay the highest taxes. Empirical data shows that Kenya, as of last year, had a fourteen percent tax as a percentage of revenue. Our peers on the continent average between twenty-two and twenty-five percent,” he said.
The first African leader to be hosted at the White House was Ghana’s former president John Agyekum Kufour in 2008 under the George Bush administration.
