Friday, June 9, 2023 – President William Ruto’s urge to overtax Kenyans has been lauded by the World Bank.
A new World Bank report praised Ruto’s efforts to raise revenue by increasing the tax rates after his inauguration.
The report titled Kenya Economic Update underscored the government’s role in sustaining the economy and lowering the debt to Gross Domestic Product (GDP) ratio, which currently stands at 67.4 percent.
However, the World Bank warned of three risks that threatened the government’s progress in economic recovery.
According to the World Bank, low rainfall, political tensions brought about by Raila Odinga’s demos, and monetary policies instituted by the Central Bank risk slowing Ruto’s efforts to put Kenya’s economy back on track.
The World Bank projected Kenya’s inflation rate to decline from 7.6 percent to 5.7 percent between 2024 and 2025.
The steps taken by the government to reduce the widening debt levels aided in reducing external and domestic imbalances.
Ruto defended tax hikes, arguing that the move would create economic stability.
“None of the tax proposals are punitive. We are in charge of the economy. Everybody appreciates that we have stabilised the economy,” he stated.
The Kenyan DAILY POST.