Catholic bishops have protested the rising taxes and Kenya Revenue Authority (KRA) harassment of Kenyans, warning the twin onslaughts will force businesses into massive layoffs and shutdown.
A day after President William Ruto’s State of the Nation address, the clerics cautioned that the runaway cost of living is a threat to Kenya’s social fabric as it had hit the poor hard, plunged households into immense suffering and strained relationships.
“This situation is perpetuating a cycle of poverty, limiting opportunities for personal and social growth. This economic stagnation exacerbates the unemployment problem, creating a vicious cycle of financial hardship for the population,” the Kenya Conference of Catholic Bishops said in a statement read by chairperson Martin Kivuva and Nyeri Archbishop Anthony Muheria.
Responding to the government’s justification of high taxes raising funds to pay off soaring debt, the bishops urged a balance.
The Kenya Kwanza Administration has borrowed Sh1.4 trillion, which officials say is to settle loans, with the President saying the first $300 million instalment of the $2 billion Eurobond will be paid in December.
“We appeal yet again to the government to find a reasonable balance between the desired income for the government and the minimum protection of the basic needs of the very ordinary Kenyans and respect to their dignity,” they said.
The clerics called for urgent interventions to assist millions of households on the edge of a precipice, going by the rising public uproar over the cost of living, which, they said, is exacerbated by the waning war on corruption.
The government has prioritised increased revenue collection to make the country less reliant on external debt, ostensibly to stabilise an economy Dr Ruto and his deputy, Rigathi Gachagua, say they inherited in a bad state from the previous administration.
But the Catholic bishops yesterday could hear none of the aggressive taxation policies believed to have the backing of global lenders, terming it over-taxation.
At a press conference in Nakuru, they raised concerns that Kenyans are enduring difficult times due to the rise in the cost of fuel and basic commodities, coupled with unemployment, corruption and insecurity.
“We have appealed to the government on several occasions to reconsider the issue of over-taxation, especially of the incomes of those in the lower bracket. This one factor has greatly affected the family income in a disproportionate way leading to anger among Kenyans.
“Further, there seems to be a lack of sensitivity in the way businesspersons and individuals are being harassed by KRA officials in view of collecting more taxes. We appeal, yet again, that the government find reasonable balance between the desired income for the government and the minimum protection of the basic needs of ordinary Kenyans ... .as true leadership can only be measured by the care we have for the most vulnerable in society,” the bishops said in a statement.
According to the bishops, over-taxation has affected family incomes in a disproportionate way, leading to anger among Kenyans. Nearly all sectors are showing price increases, with national inflation rising to 6.8 per cent in September and 6.9 in October—driven mostly by high fuel prices, according to data from the Kenya National Bureau of Statistics.
Experts who have appeared before the National Dialogue Committee have also recommended reduction of taxes, and elimination of wastage and corruption, among a raft of measures to manage the cost of living.
This week, Kenya Kwanza MPs also told Dr Ruto at a meeting in State House that their constituents were increasingly becoming hostile to them because of the tough economic times due to increased taxes and fuel costs.
On Friday, the religious leaders further delved into the need to provide basic relief to Kenyans. They called for inclusive engagements between the government and other stakeholders to come up with proper measures to mitigate the challenge.
“We, therefore, plead for wider consultations and discussions among government and stakeholders, to review and study ways we can address and mitigate the effects of the high cost of living. We believe the greater commitment and assistance in agricultural production and better coordinated sale of products can relieve many Kenyans of this burden. Families are in immense stress as they struggle to make ends meet, leading to strained relationships and increased tensions within households,” Rev Kivuva said.
“On corruption, unfortunately, we don’t seem to have resolved enough to truly and comprehensively rid ourselves of this monster. In light of this reality, a collective effort is necessary to combat corruption at its roots.”
They expressed concern that the government appears insensitive in the manner in which it is taxing Kenyans, forcing closure of many businesses. The bishops further warned that the country risks dire consequences from the high number of youths frustrated by unemployment.
They said the public sector is awash with corruption, cronyism, tribalism and discrimination that appear to influence employment. “The vice of bribery and favours for employment has truly discouraged jobseekers, especially the young people. We, therefore, appeal for more transparent and fair processes of employment, especially in public offices,” said Nyeri Archbishop Anthony Muheria.
On education, the bishops cited dis-coordinated and abrupt changes in policies, including in the distribution of university subsidies through the Higher Education Loans Board (Helb), reduction and withdrawal of capitation to universities, as well as the operationalisation of junior secondary schools. They urged the government to engage other stakeholders in an open dialogue to develop sustainable solutions.
The bishops, however, lauded the government and the opposition for agreeing to dialogue through the bipartisan talks, which they said gave the country a new lease of life and renewed hope for peaceful coexistence. They thus called for inclusive talks that bring together many stakeholders to ensure the outcomes are representative of the nation. Their briefing also touched on insecurity.
Also present were vice chairman Maurice Muhati (Nyeri), Philip Anyolo (Nairobi), Joseph Mairura (Kisii), and Alfred Rotich (Kericho), among 22 others.
