The recent passage of the Finance Act, 2023 has raised concerns over the impact on individual taxation in Kenya. With taxes and borrowing accounting for over 90 percent of the government's revenue, the need to raise funds to finance operations and programmes is crucial.
However, there is debate on whether increasing taxes will actually lead to higher revenue collection. Studies suggest that higher taxes can discourage individuals from paying taxes, especially if they do not see the benefits of their sweat.
