Human Rights Watch, a global Non-government Organization NGO advocating for human
rights, has recommended steps for the Kenyan government to stabilize the economy through
progressive revenue-raising measures. In a statement on Tuesday, the organization urged
President William Ruto’s administration to explore alternatives to borrowing from the
International Monetary Fund (IMF) or World Bank, which often impose tough conditions that
burden the middle and lower-income classes.
One key recommendation is implementing tax reforms to enforce existing tax laws, thereby
reducing tax avoidance and evasion among high-level officials. Tax avoidance is when a tax
payer uses legal means with the law while tax evasion is when a person or a company escapes
paying taxes illegally.
A United Nations reported a significant illicit financial flows and tax avoidance cases in Kenya
that remain inadequately investigated. The Kenya Revenue Authority (KRA) also reported that
over 1,309 individuals and companies have evaded taxes, resulting in a loss of Ksh.259 billion.
Addressing mismanagement and corruption is another critical measure. Ensuring that revenue is
spent as intended is essential, especially amid widespread accusations of government officials
living lavish lifestyles during a high cost of living. Gen Z protestors have been vocal about this
issue, demanding accountability and transparency.
In response to economic challenges, President Ruto announced plans to seek Ksh.180 billion in
expenditure cuts and borrow Ksh.169 billion, compensating for the Finance Bill 2024, which was
dropped due to public pressure. Human Rights Watch urged the IMF to revisit its targets to
ensure they do not impede Kenya’s ability to meet its human rights obligations and avoid
exacerbating poverty and inequality.
By adopting these measures, Kenya can work towards a more equitable and sustainable
economic future, balancing fiscal responsibility with the protection of human rights
