Is KRA meant to help Kenyan businesses grow, or tax them out of existence?
A recent case has sparked debate after a Kenyan importer said she was hit with taxes and penalties that were nearly three times the value of the goods she was bringing into the country. She says she had no option but to shut down her business.
If that's the reality for some SMEs, then we also have to think about the bigger picture.
When one business closes, it's not just the owner who suffers. Employees lose jobs, suppliers lose customers, landlords lose tenants, and families lose income.
Yes, taxes are necessary to fund public services. But they should also leave room for businesses to survive, grow, and create jobs. If the cost of compliance becomes unbearable, we risk collecting more taxes today while losing businesses—and future tax revenue—tomorrow.
The real question is: How do we strike a balance between collecting revenue and protecting the entrepreneurs who keep Kenya's economy moving?