Lawyer and Safina Party deputy leader Willis Otieno has called for Kenya to abandon the practice of introducing annual Finance Bills that frequently alter tax laws. He argues that this approach undermines economic stability and investor confidence.
Speaking on his X account on August 2, 2026, Otieno emphasized the need for a medium-term tax policy framework developed through inclusive public participation. Such a framework, he says, would offer predictability for households, businesses, and investors.
Stable Tax Policies to Spur Growth
Otieno contends that constant amendments to tax laws create uncertainty, which hampers long-term economic planning. Instead, a stable tax system would strengthen investor trust and support sustained economic development.
Broader Economic Reforms Needed
He highlighted that tax reforms should extend beyond adjusting rates. His proposal for a 5% sales tax is part of a wider agenda aimed at expanding the tax base and enhancing government efficiency.
- Addressing fiscal challenges through better expenditure management rather than just revenue collection.
- Conducting thorough reviews to eliminate corruption, duplication, and wasteful spending.
- Improving public financial management and digitizing tax administration.
- Encouraging formalization of businesses and cracking down on tax evasion and illicit financial flows.
Lower Taxes to Boost Disposable Income and Jobs
Otieno also advocates for lower consumption taxes, which he says would increase disposable income, stimulate demand, and promote business growth and employment.
He summarized his vision: "Lower taxes, broaden the tax base, eliminate waste, strengthen compliance, and grow the economy. A prosperous economy generates sustainable revenue far more effectively than punitive taxation."
His proposals build on earlier recommendations to replace Kenya's complex and costly Value Added Tax (VAT) system with a simpler 5% sales tax, aiming to reduce living costs and encourage investment.
