Kenyans who own businesses could soon enjoy major tax cuts after the Treasury Cabinet Secretary John Mbadi announced the government's intention to reduce taxes for businesses countrywide.
Mbadi, while speaking on Saturday, January 17, during the Privatisation and Budget People's Dialogue in Kakamega, stated that the current approach of taxing businesses was ineffective, as it interferes with job creation.
According to the CS, excessive taxation of businesses reduces the capacity of the enterprises to expand, invest, and hire workers, resulting in the stagnation of the economy.
Mbadi revealed that the government’s priority is to reduce business taxes to the bare minimum, a move he said was aimed at protecting jobs and creating more employment opportunities.
"Taxing businesses affects the creation of employment. The best thing is to reduce to the bare minimum the taxation of business, and that is what we are pushing towards," Mbasi stated.
While emphasising tax cuts for the business sector, the Treasury CS stressed that taxation must be approached with caution and fairness, further arguing that the tax burden should first fall on the wealthy, then on income.
"Taxes are not the best thing. When you are taxing, you must be very careful, tax the rich, do not go for business, then come to income if the money you get is not enough," he added.
Mbadi Clarifies Introduction of New Taxes in Next Budget Cycle
During the event, the CS dismissed the government's plan to introduce more taxes in the next 2026/2027 budget, insisting that the government will not introduce new taxes or increase existing ones.
According to Mbadi, the government had learnt from the 2024 anti-Finance Bill protests, which resulted in the destruction of property and the withdrawal of the defunct proposal.
"The government tried to push further, more taxes, and we know the outcome. That is not an option, no more taxes or increased taxation for Kenyans," Mbadi reiterated.
He reiterated that Kenyans have strongly rejected any future additional taxation, warning that forcing such measures on the people would be both unfair and dangerous to the economy.
"By the way, we will be unfair if we push for more taxes. This is because taxes reduce private wealth. Taxes will reduce your wealth whether you like it or not, although we have to pay them," he affirmed.
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