'You cannot grow an economy through taxation,' experts warn

The government has been urged to create a more predictable and supportive environment for investors.

Economist Stephen Gachie and Justina Wamae of Champion for Economic Democracy, aver that Kenya’s taxation system is unstable and discourages growth.

Speaking on Spice FM on Thursday, September 11, the duo argued that the country must rethink its values and systems to revive the economy, warning against excessive reliance on debt.

Gachie accused the government of overburdening workers with payroll taxes, calling the approach unsustainable.

“There’s a lot of taxation on people who are on the payroll. You cannot grow the economy organically through taxation,” he said.

Wamae criticised policymakers for failing to create meaningful opportunities. “I want to blame leadership, because our leaders, or rather those in positions to influence and shape policies and legislation, have failed us,” she said.

She added that political gestures such as handing out motorcycles to riders, popularly known as boda bodas, do not amount to real economic empowerment.

“What is this we are calling economic empowerment? Why would a politician celebrate after giving out boda bodas? Most of those enterprises started through such empowerment will collapse before the sixth month,” she said.

The two urged the government to prioritise formal employment, production, fair taxation, and reliable energy to drive long-term growth.