The Kenya National Chamber of Commerce and Industry (KNCCI) will push for a stable and predictable tax regime when the National Assembly Finance Committee begins its sittings to collect public views on the 2025 Finance Bill.
KNCCI President Dr Erick Rutto said frequent changes in tax policy, through the introduction or withdrawal of levies, have discouraged both local and foreign investment.
Tanzania has since emerged as one of the favourite destinations for foreign investors seeking to set up within the East Africa region. "We did some research and found that Tanzania has had a relatively stable tax regime for the last seven years," said Rutto, adding, "Kenya is not leading in terms of attracting Direct Foreign Investments.
Uganda has beaten us, Tanzania is fast rising…Ethiopia gets almost twice, while Somalia attracts half of our gains despite its challenges." The Chamber of Commerce President argued that Kenya must commit to maintaining consistent tax policies for at least five years, in order to regain investor confidence and reinforce its position as East Africa's largest economy, which currently accounts for 40 percent of the region's Gross Domestic Product (GDP). He welcomed the 2025 Finance Bill which introduces no new taxes, noting that the government should also consider addressing other investment challenges, including high costs of power, credit, capital, and bureaucracy.
