Kenya needs smart tax policies to hit UN development goals

Public finances are central to achieving many of these goals. Taxation remains the primary source of revenue for governments, while also serving to reduce inequality and influence consumption and production behaviour positively.

Several SDGs are directly linked to taxation, especially those focused on poverty, hunger, health, education, equality, and decent work.

These goals are particularly urgent in developing nations, where the challenges they address are most pronounced.

SDG 1: End poverty in all its forms everywhere

This is among the most pressing challenges in developing countries. Sustainable development is impossible in a society marked by widespread poverty. SDG 1 outlines seven targets aimed at eradicating extreme poverty, halving the number of people living in poverty, and implementing appropriate social protection systems.

The goal recognises that solutions must be country-specific and complemented by international efforts, given poverty’s destabilising effect on economies and societies.

SDG 2: End hunger, achieve food security, and promote sustainable agriculture

This goal aims to ensure year-round access to safe, nutritious, and sufficient food, particularly for the poor and vulnerable. It calls for increased investment in rural infrastructure, agricultural research, and technology, especially in developing countries.

By 2030, the goal is to double the productivity and income of small-scale food producers—including women, indigenous communities, and fishers—by improving access to land, inputs, finance, knowledge, and markets.

Read:  Is Finance Bill 2025 aligned with the National Tax Policy?

SDG 3: Ensure healthy lives and promote well-being for all at all ages

Health is a foundation for human productivity and economic prosperity.

SDG 3 targets include reducing maternal mortality to fewer than 70 per 100,000 live births and ending preventable deaths of newborns and children under five. It also seeks universal health coverage, including access to quality health services, essential medicines, and vaccines.

SDG 4: Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

By 2030, all girls and boys should complete free, quality primary and secondary education. Another key target is a substantial increase in the number of youth and adults with relevant skills—particularly technical and vocational—for employment, decent work, and entrepreneurship.

Achieving these goals hinges on sound public policy, effective resource mobilisation, and efficient use of domestic revenues. The UN recognises that economic growth, supported by a stable and enabling environment, is crucial to this effort.

Countries must adopt coherent social, environmental, and economic policies while maintaining healthy fiscal space.

To realise the SDGs, nations must mobilise substantial domestic public resources, complemented by international support.

The government should continuously enhance revenue administration through modernisation of the tax system, implementation of a progressive tax regime, rolling out effective tax policies and having an efficient tax collection system.