Ruto's administration continued aggressive tax collection strategy initiated under Uhuru, deploying KRA to maximize revenue extraction particularly from informal economy. The approach prioritized revenue collection efficiency over progressivity: digital taxation systems tracked informal traders' transactions, automated tax deductions, and expanded tax base to previously untaxed populations. While revenue collection increased, the regressivity persisted: ordinary Kenyans bore disproportionate tax burden while wealthy corporations maintained exemptions and deductions. Ruto's taxation approach combined with austerity created squeeze: citizens faced higher taxes while government cut welfare spending and prioritized debt service. This pattern suggested that Ruto's economic approach, despite hustler messaging emphasizing entrepreneurship, was implementing policies constraining small trader wealth accumulation through taxation. Whether this contradiction would eventually weaken Ruto's electoral coalition as informal economy workers realized taxation burden was increasing remained uncertain.
See Also
Kenya Tax Policy and Inequality KRA and Informal Sector Taxation
Sources
- Kenya Revenue Authority, "Tax Collection Report 2022-2023," KRA Archives