Insights from Human Rights Watch
President William Ruto
Introduction to Human Rights Watch’s Recommendations
Human Rights Watch, a global NGO advocating for human rights, outlines steps for Kenya to increase revenue and stabilize its economy without further IMF or World Bank loans.
Exploring Alternative Options
In a recent statement, Human Rights Watch proposed alternatives to borrowing, citing economic pressures on the middle and low-income classes due to stringent IMF and World Bank loan conditions.
Enforcing Tax Reforms
President William Ruto’s administration can enhance revenue by implementing tax reforms that enforce existing laws, curbing tax avoidance and evasion by high-level officials.
Understanding Tax Avoidance and Evasion
Tax avoidance uses legal loopholes to minimize taxes, while tax evasion involves illegal methods to evade paying taxes.
Concerns Raised by International Bodies
The United Nations Committee on Economic, Social and Cultural Rights reports significant illicit financial flows and unchecked tax avoidance in Kenya.
Impact of Tax Evasion
The Kenya Revenue Authority identifies over 1,309 cases of tax evasion, resulting in losses totaling Ksh. 259 billion.
Addressing Mismanagement and Corruption
Sealing loopholes in government mismanagement and corruption ensures revenue is used appropriately.
Support from Gen Z Protestors
Gen Z protestors demand accountability, criticizing officials for lavish spending amidst rising living costs.
Increasing Taxes on the Wealthy
Human Rights Watch suggests raising taxes on wealthy individuals to bolster government revenue.
Global Concerns on Tax Abuse
The Tax Justice Network ranks Kenya among countries losing Ksh. 24 billion annually to global tax abuse by wealthy multinational corporations.
Assessing IMF Program Conditions
Human Rights Watch urges Kenya to assess IMF conditions to safeguard human rights and avoid exacerbating poverty and inequality.
Call for Economic Sustainability
Sarah Saadoun, a senior researcher at Human Rights Watch, emphasizes the need for a fair revenue system that funds essential services while respecting human rights.
Government’s Financial Strategy
President Ruto proposes Ksh. 180 billion in expenditure cuts and Ksh. 169 billion in borrowing, abandoning Finance Bill 2024 due to public pressure.
Revisiting IMF Targets
Human Rights Watch calls on the IMF to reassess targets to avoid hindering Kenya’s human rights obligations or worsening poverty and inequality.
These measures proposed by Human Rights Watch underscore the importance of sustainable economic practices that prioritize fairness and accountability in revenue generation.
