The government, through the National Treasury, has announced a new partnership aimed at strengthening the country's fiscal policy framework.
During a meeting on Monday, March 3, Cabinet Secretary for the National Treasury, John Mbadi, alongside the UK High Commissioner to Kenya, H.E. Neil Wigan, presided over the ceremonial exchange of a Memorandum of Understanding (MoU) between the National Treasury and the UK's Overseas Development Institute (ODI).
The signing of the MoU was witnessed by the Principal Secretary for the National Treasury, Dr Chris Kiptoo, with Mbadi noting that the partnership was likely to enhance the National Treasury's capacity in tax policy analysis.
"The collaboration will boost tax research, capacity-building initiatives, and the dissemination of research findings, strengthening Kenya’s ability to formulate sound fiscal policies," a statement from the Treasury said.
The initiative also aims to support evidence-based policy recommendations and informed decision-making, ultimately improving Kenya’s fiscal landscape.
Founded in 1960, the Overseas Development Institute (ODI) is a reputable and independent global think tank based in London. Its main focus is international development and global affairs, and the organisation has partnered with governments, civil societies, and international organisations to shape policies that drive sustainable growth.
Under this collaboration, Kenya stands to benefit from enhanced tax research and capacity-building programmes—efforts that will strengthen the country's ability to formulate sound fiscal policies.
Dig deeper: The debate over sustainable tax policies has been ongoing since last year, often putting Mbadi in a challenging position as he seeks to justify the government's tax decisions to Kenyans.
More recently, Mbadi was forced to issue a clarification on key taxation avenues such as Value Added Tax (VAT) and employment tax in the upcoming Finance Bill 2025, set to be submitted to the National Assembly for approval. Amid concerns, Mbadi announced that there would be no additional tax adjustments on the two.
Earlier in February, Mbadi also had to clarify the contentious issue of the Social Health Authority, dismissing claims that the government was overtaxing Kenyans.
The government's key challenge at the moment is exploring ways to broaden the tax base without overburdening Kenyans, especially low-income earners. Partnering with the ODI is expected to help incorporate research-driven tax policies.
