June 14, 2024

Lobby group moves to court to tame Ruto’s appetite for taxes

3 min read
Lobby group moving to court to tame Ruto's appetite for taxes

Lawyer Fanya Mambo leads a lobby group to file a petition in an attempt to tame President William Ruto government's appetite for taxes

Lawyer Fanya Mambo leading a lobby group to file a petition in an attempt to tame President William Ruto government’s appetite for taxes.

In a statement, lawyer and activist Fanya Mambo revealed that he is leading a lobby group seeking to file a petition to curb government’s indirect taxation to only 20 per cent of an individual’s salary.

He argued that the lobby group want the court to set the taxation limit in the Constitution.

The lobby group argues that the Ruto administratio has been on a spree of introducing more taxes at a time when Kenyans are reeling under a blanket of a high cost of living.

“We are part of a lobby group that is moving to court next week and I am the main petitioner. We want a Constitutional petition that sets the limit to how much government can take from your salaries,” he lamented.

“We have gotten to a point in this country where the government feels entitled to our salaries. They wake up and decide that they can raid in your salary to the point that it is unlimited, the raid is uncontrolled.”

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The activist added that while overall taxation (both direct and indirect taxes) on a monthly salary has risen to nearly 60%.

The taxes included Pay as You Earn, medical cover as well as the recently introduced housing levy of 1.5 per cent.

Value Added Tax (VAT) on all items seen on shop shelves is one of the indirect taxes that have also been increasing. 

Fuel VAT was also raised by the Ruto administration from 8% to 16%.

“As part of the talks at Bomas because we are sure a referendum will come out of it, we want Kenya to set a threshold and say that indirect taxation, the government cannot take more than 20 per cent of what you earn. That has to be made very clear,” he added.

The lawsuit comes weeks after the Supreme Court dismissed Busia Senator Okiya Omtatah’s petition challenging the Court of Appeal’s ruling that lifted orders barring the implementation of the Finance Act 2023.

Omtatah wanted the implementation of the Finance Act 2023, which took effect beginning July 1, stopped for burning salaried Kenyans.

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