Kenya Kwanza Regime Now Goes For Farmers In New Tax Measures


Kenya Kwanza Regime Now Goes For Farmers In New Tax Measures

President William Ruto’s government is considering implementing additional taxes, specifically focusing on farmers, as part of new initiatives to generate increased revenue.

The Treasury Cabinet Secretary, Prof. Njuguna Ndung’u, has outlined in a medium-term revenue strategy that the administration is proposing a fee of Ksh.5 for every Ksh.100 earned from sales for farmers who sell their produce in the market.

According to CS Ndung’u, the agricultural sector is currently deemed to be insufficiently taxed.


The document says, “The Kenyan economy is dependent on the agricultural sector contributing an average of 21.2% of the GDP and the highest employer compared to other sectors.”

The Treasury acknowledges the unique challenges within the agricultural sector, making taxation a complex endeavor.

Given its highly informal and cash-based nature, coupled with the prevalent belief that the sector should remain untaxed, the Treasury plans to establish mechanisms to overcome these challenges and maximize tax collection from Kenyan farms.

Under the proposed measures, the government aims to implement a final withholding agricultural produce tax, set at a rate not exceeding 5% of the value of the produce delivered to cooperatives or other organized groups.

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Essentially, this implies that out of every Ksh.100 a farmer earns in the market, Ksh.5 will be allocated to the government.

To ensure the success of these taxation initiatives, the government intends to enhance taxpayer education, emphasizing the role of individuals in contributing to nation-building through tax payments.

The Treasury’s proposals will undergo a process of public participation through Parliament before potential implementation.

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Kenya Kwanza Regime Now Goes For Farmers In New Tax Measures



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