Ruto urges MSMEs to increase tax contributions for growth

Kenya's president has highlighted a stark imbalance between small business productivity and taxation contributions after revealing that micro enterprises generate one-third of national output while remitting less than 2 percent of government revenues. William Ruto announced reforms targeting 5 million additional small operators through a specialized Kenya Revenue Authority division that will simplify compliance procedures for entrepreneurs currently outside the formal system.

The administration estimates that 3 million salaried workers deliver 600 billion shillings annually, while 17 million registered taxpayers provide just 17 billion shillings. Authorities have introduced digital rental income tracking, expected to boost collections from 14 billion to 80 billion shillings as the revenue agency pursues a 3 trillion shilling annual target.
 

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