Things are set to get even worse for President William Ruto in the coming days with regards to Eurobond loan repayments, it has emerged.
Ruto and those close to him have been lamenting of a financial crisis in the government, while blaming the same on loans which are gobbling up a huge percentage of money the state collects in taxes.
But it’s emerging that more taxes are coming up for repayment, including the Eurobond, which will be maturing soon, putting the Head of State in an even tight corner with regards to raising the needed funds.
The Standard reports that this could be the reason behind his proposed higher taxes and the speed at which he is trying to implement the proposals contained in the controversial Finance Bill 2023.
But the high taxes continue to be condemned by Kenyans, the opposition and independent bodies, which are now warning that apart from making life hard for Kenyans, they will incapacitate the economy.
“Taxation for our economic model and growth stage has been badly misaligned for many years. And increasing desperation for funds by heavily over-indebted governments is now making them draw up increasingly unrealistic tax policies and rates,” economist Deepak Dave of Nairobi-based Riverside Advisory has told the paper.
He says that Ruto’s only option is bringing taxes down for the sake of Kenyans.
“They cannot possibly go higher. They have to go down, that is the only debate to have,” he is quoted.
But associates of Ruto have held that the proposed tax hike is very necessary, with some like Deputy President Rigathi Gachagua wondering where development money will come from if not from taxes.
Opposition Leader Raila Odinga has said that the taxes can only make life harder for Kenyans, warning of new protests if Ruto bulldozes the bill through parliament using his numbers in the house.
