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The Perils of Political Transformation: William Ruto's Journey from "Opposition" to Power

In the theatre of political dynamics, there exists a recurring narrative where figures ascend to prominence by vociferously opposing a prevailing order, only to embody the very principles they once denounced. This phenomenon, starkly observable in contemporary Kenyan politics, reveals a troubling trend that transcends mere political theatre, implicating fundamental issues of governance, integrity, and national identity. The Ruto Paradox: From Anti-State Capture to the Heart of Power William Ruto’s rise to political prominence was rooted in a fervent opposition to the concept of “deep state” and systemic state capture. His campaign resonated with many Kenyans disillusioned by entrenched corruption and elite manipulation. Ruto positioned himself as the champion of the ordinary citizen, a beacon of reform against the opaque machinations of entrenched power. However, upon assuming office, the very principles that propelled Ruto to power seemed to erode. His administration, initially celebr...
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"Shift your Manufacturing Industries to Uganda and Export Duty Free to Kenya": The Finance Bill 2024 and Kuria Kimani's Silly and Misguided Advice



The Finance Bill 2024, introduced by President William Ruto, is a convoluted maze of taxes and levies that promises to squeeze every last shilling from the pockets of ordinary Kenyans and businesses alike.

Amidst this chaos, we have the stupefying suggestion from National Assembly Budget and Appropriation Committee Chair, Kuria Kimani, urging manufacturers to shift their operations to Uganda to avoid Kenya's punitive taxes. This isn't just misguided—it's an insult to Kenyan enterprise and a stark indicator of the government's disconnect from reality.

Draconian Tax Regime
Let's dissect the Finance Bill 2024. It's a nightmare for anyone trying to make an honest living. A new motor vehicle tax at 2.5% of the vehicle's value? If you're buying a car worth KES 1 million, you're forking out an additional KES 25,000 just for the privilege. There's also a withholding tax increase on goods supplied to public entities—3% for residents and a staggering 5% for non-residents.

The bill further proposes to tax income from digital marketplaces at 20% for non-residents and 5% for residents. Goodbye to competitive online businesses and hello to stifling digital innovation. The cherry on top is the introduction of a Significant Economic Presence Tax at 30% of deemed taxable profit for non-residents. These measures aren't just stringent; they're suffocating.

Impact on Everyday Life
Now, let's talk about the real impact on Kenyans.

The Value-Added Tax (VAT) Act amendments will hit your wallet hard. By removing exemptions in crucial sectors like tourism and manufacturing, everyday costs are set to skyrocket. Planning a holiday? Your hotel stay will now include VAT, adding significantly to your expenses. Are you in manufacturing? Expect to pay more for equipment and materials, which will inevitably trickle down to consumers. Or just pack up and go to Uganda!

Excise Duties and Financial Strain
The excise duties proposed are equally harsh. Digital services will be taxed, and levies on money transfers are set to increase from 15% to 20%. Imagine sending KES 10,000 to your mum in the village and paying an extra KES 2,000 in fees! This isn't just an inconvenience; it's a financial burden on those who can least afford it.

Tax Administration Blues
Coming to tax administration, the Bill extends objection decision timelines to 90 days, up from 60. This means prolonged uncertainty and potential financial distress for businesses waiting on critical tax decisions. The Kenya Revenue Authority (KRA) will also push for real-time integration of taxpayer systems with its own. While this could streamline processes, it also raises concerns about privacy and government overreach.

Stupid Advice from Kuria Kimani
In the midst of these draconian measures, Kuria Kimani’s statement is a slap in the face.

Advising manufacturers to relocate to Uganda to benefit from duty-free exports back to Kenya is not just impractical—it's ludicrous and downright silly. This suggestion undermines the efforts of hardworking Kenyans who have invested time, money, and sweat into building their businesses on home soil. It’s a clear indication that the Ruto administration is out of touch with the realities faced by local entrepreneurs.

Looking Ahead
The changes to the Miscellaneous Fees and Levies Act add another layer of complexity. While the Export and Investment Promotion Levy rate is reduced, the list of taxable items has expanded. This means more costs for businesses involved in export and import activities. For instance, under the new regime, exporting goods worth KES 100,000, previously taxed at 17.5% (KES 17,500), would now incur a 2% levy (KES 2,000). On the surface, this seems beneficial, but the broader impact on industries can't be ignored.

Conclusion: Ruto Must Go!
William Ruto’s Finance Bill 2024 is a disastrous mix of taxes and levies that threaten to cripple Kenyan businesses and bleed consumers dry. Coupled with the tone-deaf advice from government officials like Kuria Kimani, it’s clear that the current administration is not only out of touch but dangerously detached from the needs and realities of the Kenyan people. It’s time for a serious rethink of these policies before they push more businesses to the brink and stifle the economic growth we desperately need.

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