Federation of Kenya Employers (FKE) now warns that government policies to revive the economy not working as it raises alarm over the high cost of living.
The government’s economic initiatives to boost the Kenyan economy and provide relief on the rising costs of living, according to the Federation of Kenya Employers, are not working.
In her submission to the National Dialogue Committee, FKE Chief Executive Officer Jackline Mugo said the economic situation in the country is getting worse.
FKE termed the economic situation in Kenya as worrying saying Kenya’s economy has hit turbulence.
FKE boss Mugo said the amount of taxes levied on employers and employees has become unbearable.
“One trend we are seeing is taxes are levied on pay basic…that has had a major impact…you tax employees on allowances, leave etc.,” she said.
FKE further told the bipartisan committee that the layers of taxes introduced through the Finance Act of 2023 are hurting rather than generating revenue for the government.
The FKE boss further faulted the laws and policies generated to stabilize the economy.
“They are not working…the climate in which business is being done is terrible. You can’t have a country where you have 20 layers of taxes,” Mugo stated.
FKE’s presentation before NADCO was preceded by a report on the Bloomberg business news outlet that ranked Kenya’s stock exchange as performing the worst in the world.
At the Nairobi Securities Exchange Equity turnover jumped from Ksh.67million to Ksh.227.6 million. Despite this, shares traded went down leading to a drop in the 20-share index as well as the all-share index.
Also presenting on the economy was the Azimio Economic Council led by its Chair Nderitu Muriithi. Azimio warned that the country’s debt strain is a ticking time bomb.
“Experts agree we are in dire debt distress. The debt default is looming and all these have put our country on a terrible trajectory,” he said.