Figures indicate that while Corporate Kenya remains profitable, earnings growth is steadily losing momentum amid weaker consumer demand, higher operating costs and an increasingly heavy tax burden.
By
Constant Munda
Correspondent
Nation Media Group
Growth in corporate tax receipts has slowed to the weakest level in five years, exposing the government's struggle to squeeze more revenue from businesses and triggering Treasury’s failed bid to raid a minimum of 60 percent of retained earnings.
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The latest growth rate marks the weakest expansion since the 2022/23 financial year.
Cutting the rate to at least 25 per cent from the current 30 per cent, they argue, would stimulate foreign direct investments.
The National Treasury has yet to implement key tax concessions promised under its Medium-Term Revenue Strategy despite the policy…
Repeated attempts by Kenya’s Treasury to expand KRA’s enforcement powers have again been blocked by MPs, reflecting ongoing…
The KRA will likely record wider missed targets if the tax concessions are adopted without a reduced revenue outlook for the…
The government’s determination to widen the tax base reflects an attempt to curb excessive borrowing and restore fiscal stability.
