Kenya has reported the slowest growth in collections from value-added tax (VAT) since it started enforcing International Monetary Fund-led reforms a decade ago on the back of elevated inflation which has squeezed salaries and curtailed new private-sector investments.
The growth in VAT, charged on consumption of goods and services along the supply chain, for the financial year ended June 2023 is the most sluggish in 10 years, excluding the pandemic year when the levy was trimmed, according to the latest official statistics.
