Nairobi — President William Ruto plans to nearly double Kenya's average tax rate before his term ends.

Speaking during a meeting with Harvard University students at State House Nairobi yesterday, the Head of State outlined his vision of raising the country's current tax rate from 14 percent to 22 percent.

Ruto emphasized the importance of enhancing revenue generation to fund critical government initiatives and reduce the burden of foreign borrowing.

"Kenyans have been conditioned to think that they pay the highest taxes but empirical data shows that as of last year our tax as a percentage of our revenues is 14 percent," he said.

He added that by increasing the average tax rate, the government seeks to expand its revenue base, thereby enabling investments in key sectors such as healthcare, education, infrastructure, and social welfare.

"Possibly this year we will be at 16 percent from 14 percent. I want to leave it between 20 and 22 percent at the end of my term," he added.

Under the proposed taxation plan, slated for implementation in the 2024-25 fiscal year, the state aims to secure a more sustainable financial future while fostering economic stability and growth.

The president asserted that he is aware of the fact that the proposed tax hike is expected to generate significant debate and scrutiny, particularly regarding its potential impact on businesses, consumers, and the overall economy.

He, however, noted that it is the best way to make Kenya self-reliant.

President contends that by strengthening domestic revenue mobilization, the government can better protect against economic shocks and ensure sustainable development for future generations.

The president's announcement comes amid growing pressure to address Kenya's fiscal challenges, including rising debt levels and budgetary constraints exacerbated by a slowed economy still recovering from the ravages of Covid-19.