Nairobi Tuesday 26th Sept 2023. The Institute for Social Accountability
(TISA) with support from Christian Aid
Kenya Tuesday released its study report dubbed Small Biz, Big Tax which targeted MSME’s and informal traders drawn from Nairobi City County. The central focus of the report was to explore mechanisms for strengthened citizen engagement towards enhancing domestic resource mobilization through pro-poor tax policy reforms.
The study which was conducted using a mixed method approach found out that the cost of doing business was being clouded by multiple licensing (double taxation), unappealing operating environments to both vendors and customers, alienation to a receipt-
evasive system (lack of accountability), increasing cost of living and the
influx of counterfeit goods which were available at low prices.
The study also showed that there were good practices which aimed at improving tax justice in revenue systems targeting youth and women entrepreneurs at national and county government’s levels.
It showed that gains were being realized towards mainstreaming the critical concerns including gender, youth, and Persons with Disabilities (PWDs), a significant step in propagating inclusive socioeconomic development in the country.
Speaking during the launch, Christian Aid Country Director Ms. Janet Ngombalu said that she fully supported the small, micro and medium enterprises because they are the backbone of the country. She said that 80% of the labour work force in Kenya was made up by the informal sector. She called on the Kenyan government to be transparent and accountable.
It is important to call to action the things we’re seeing…… tax should be equitable, transparent and accountable.
Said Ms. Ngombalu
She added that Christian Aid Kenya will continue to collaborate with all actors of economic justice to gather evidence so that they can keep the government in check.
TISA Kenya national cordinator Ms. Diana Gichengo said that tax collection is an issue of justice and patriotism and therefore shouldn’t be militarized.
She highlighted that people had faced violence in the course of revenue and tax collection. She cautioned the government not to turn the country into a police state.
National Assembly deputy majority leader Mr Owen Baya thanked TISA Kenya for conducting public participation sessions to sensitize Kenyans about taxation. He said it was important for any government to tax its citizens in order to offer services to them. He however called on the government to be accountable and use taxpayers money well.
We collect a lot of taxes in this country but the question is where does the money go? The more we do not have accountability for the resources that we have, the more we tax the people.
Mr Baya remarked.
He concluded by saying that there can’t be tax system without accountability.
About TISA Kenya
The Institute for Social Accountability (TISA) is a civil society initiative committed towards the achievement of sound policy and good governance in local development in Kenya, to uplift livelihoods of the poor and marginalized.
It focuses on governance and has built up considerable expertise and networks in local governance, participatory governance, advocacy strategies and capacity building.
Reporting by JAMES MUTUA in Nairobi
