Exclusive: Jimi Wanjigi Reveals Why Ruto’s Ksh2.9 Trillion Tax Plan is Unrealistic
Jimi Wanjigi, a businessman and 2022 presidential candidate, argued on June 14 that President William Ruto’s plan to collect Ksh2.9 trillion in revenue was unrealistic.
According to the businessman, Ruto planned to increase tax revenue from Ksh1.9 trillion to Ksh2.9 trillion in the 2023/2024 fiscal year. According to the billionaire, it was nearly impossible to raise funds within one fiscal year.
In an interview with the media, Wanjigi asserted that the head of state failed to assess the current state of the economy before establishing the goal.
In addition, he stated that the economy was stagnant and the cost of living was high. Thus, he remarked that imposing additional taxes would harm citizens who struggle to meet their basic needs.
He added that the current administration has not increased the tax base to assist the President in reaching his revenue goal.
“For the very first time, every Kenyan I know and speak with is experiencing some form of economic pain. We must ask ourselves what the solutions are and what caused the issue. Wanjigi posed on NTV while speaking.
“The Finance Bill arrives at a time when we have no money and high living expenses. This Bill seeks an unattainable objective. It aims to increase annual tax revenue from Ksh1.9 to Ksh2.9 trillion. Mwai Kibaki and Uhuru Kenyatta did not even accomplish this during their combined terms in office, he insisted.
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Wanjigi observed that Ruto’s primary objective was to raise additional funds to service debts and loans. Thus, the candidate for president in 2022 advised the head of state to restructure debt repayment plans and slow down the implementation of new punitive tax measures.
“When the economy is in this condition, it is impossible to impose high taxes on the populace. You will receive fewer funds because you have asked for too much,” Wanjigi reaffirmed.
Ruto had previously opposed his administration’s imposition of punitive taxes on Kenyans. Ruto clarified in his Mashujaa Day address that his administration intended to increase the tax base by increasing employment.
Ruto stated on October 20, 2022, “The solution lies in empowering Kenyans to enter the taxable income category through deliberate efforts to create millions of new jobs and taxpayers in due course.”
Ruto insisted that his administration would not default on its loan servicing obligations. Kenya’s debt reached Ksh9.6 trillion as of Friday, June 9th.
Out of Ksh9.6 trillion, Ksh5 trillion was owed to external creditors and Ksh4.5 trillion was owed to domestic lenders such as local banks.
In addition, Ruto ruled out seeking additional loans to pay off internal debts. And alleviate the cash crunch affecting various sectors.
Exclusive: Jimi Wanjigi Reveals Why Ruto’s Ksh2.9 Trillion Tax Plan is Unrealistic
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