Kenya's Unstable Tax Regime Stifles Economic Growth, Expert Warns

Kenya's Economic Growth Hampered by Unstable Tax Regime: Expert Calls for 5-Year Stability Nairobi, Kenya – A leading economist, Dr. Erick Rutto, has highlighted the detrimental effects of Kenya's fluctuating tax regime on attracting foreign investment. Speaking on SpiceFM, Dr. Rutto argued that the lack of a stable, predictable tax system for at least five years is hindering Kenya's ability to compete with its neighbors for development funding. "If you look at the Development Finance Institutions (DFIs) going into East African countries, you will find that Kenya is not one of the countries," Dr. Rutto stated. He pointed to Tanzania as a positive example, noting their relatively stable tax regime for the past seven years. This stability, he explained, has attracted significant investment. In contrast, Dr. Rutto expressed concern that Kenya's inconsistent tax policies are discouraging DFIs from investing in the country. He emphasized the need for a long-term commitment to fiscal stability to foster economic growth and attract much-needed capital. Dr. Rutto's comments underscore the urgent need for Kenya to address its tax policy inconsistencies to unlock its economic potential and improve its standing in the East African region. The call for a five-year stable tax regime offers a concrete solution to attract investment and boost economic development.