How Ruto directive drove away over 100 millionaire investors out of Kenya; Global report
Ruto directive on raising taxes forced over 100 millionaire investors out of Kenya according to Henley Private Wealth Migration Report 2023
Ruto directive on raising taxes forced over 100 millionaire investors out of Kenya according to Henley Private Wealth Migration Report 2023.
According to a recent global report, political unrest and high taxes caused almost 100 billionaire investors to leave Kenya in 2022.
According to the Henley Private Wealth Migration Report 2023, which was released on Tuesday, June 13, wealthy people fled out of Kenya in search of nations with lower tax rates.
This indicated the impact of President William Ruto’s administration’s eagerness to raise taxes in order to raise more revenue.
According to the survey, 100 millionaires were also expected to depart Kenya in 2023, demonstrating that investors are concerned about Kenya’s current situation.
British journalist and Rector of the Institute for Human Sciences in Vienna, Misha Glenny, stated that High-Net-Worth Individuals (HNWI) are primarily drawn to areas of personal freedom and political stability.
HNWIs are individuals who have amassed Ksh139 million ($1 million) or more in their possession.
“Political stability is the key metric for those selecting where they want to live, together with low taxation regimes and personal freedom. Until Russia – Ukrainian war comes to an end, both countries will continue to export HNWIs, and this will remain the single largest driver of relocation,” read part of Glenny’s remarks as quoted in the report.
Sunita Singh-Dalal, a partner at Private Wealth and Family Offices at Hourani, also listed rising debt, a dysfunctional healthcare system and a high-crime rate as factors driving millionaires out of the country.
Political volatility during the electioneering period before the August 9, 2022, General Election led to uncertainty among most tycoons who sought to shift their investments to other countries.
The report revealed the latest inflows or outflows of several dollar millionaires in 2022 and the projection for the year 2023.
According to Henley Private Wealth Migration Report 2022, Kenya was projected to increase the number of HNWI by 50 per cent for the next ten years.
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In 2021, the number of Kenya’s dollar millionaires grew by 2 per cent.
In the latest Africa Wealth 2023 report by Henley & Partners, Kenya was ranked the fourth wealthiest country in the continent – possessing 7,700 dollar millionaires and 15 centi-millionaires (individuals whose wealth amount to Ksh13.6 billion).
Some of the factors that encouraged the growth of wealth in the country included a well-developed banking system, robust ownership rights, development of key sectors, and media freedom.
The Kenya-Kwanza administration intends to raise an additional Ksh211 billion as revenue through the tax policy changes stipulated within the Finance Bill 2023. This is four times more than the Finance Act 2022 – signalling Ruto’s direction in curbing the country’s debt crisis.
In September 2022, the President tasked the Kenya Revenue Authority (KRA) to collect Ksh3 trillion by the end of June 2022/2023.
The Authority was also directed to double the amount in the next five years.
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