Nairobi — US Ambassador to Kenya Meg Whitman says Finance Act 2023 makes Kenya's tax policy more consistent and bankable for Foreign Trade Investment (FDI) optimization.
The US Ambassador says that Kenya must have a consistent, transparent and fairly administered national tax policy in order to attract and retain foreign direct investments.
"The Finance Act 2023 will greatly help Kenya accelerate economic growth and development," she said on Wednesday while addressing the 2023 Devolution Conference in Eldoret, Uasin Gishu county.
Whitman added that if Kenya wants to accomplish the goal of building a business -friendly environment for foreign investors, President William Ruto's administration must address various issues affecting the taxation policies.
According to her, the government tax rates don't have to be the lowest but the most consistent.
"All of you know that some work still needs to be done but the recent Finance Bill had many changes that will make Kenya taxation Policy more consistent and more bankable by foreign direct investment," she said.
Whitman however revealed that many foreign investors from the US are worried about the Kenyan debt which has hit the Sh 10 trillion debt ceiling according to the National Treasury.
"Kenya like many developing countries, is faced with high debt limiting its abilities to fund the public services and infrastructure in line with its ambitions," she stated.
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Whitman also said that for Kenya to reach its full potential in all areas of development corruption, which is a critical issue, must be addressed.
"Without a doubt everyone knows that corruption leads to misuse of public resources, slows economic growth and damages the investment climate," she said, adding that war against corruption in Kenya remains a big challenge.
The government has been implementing several measures to improve trade and economic conditions following consultations with political and business communities.
During the American chamber of commerce business summit held in March 2023 in Nairobi President William Ruto announced several reforms including a consistent fair and predictable tax regime, elimination of VAT on exports services and commitments to revitalize Kenya special economic zones.
"My government is committed to make Kenya one of the most attractive places to do business, Kenya has been ranked the third most attractive place to do business in Africa by the World Bank," President Ruto said.
The Supreme Court is expected to rule about the controversial Finance bill 2023 on the 28th of August following a case raised by Busia Senator Okiya Omtatah and other society organizations challenging its implementation.
