Kenya’s tax increase a risky gamble

Increasing taxes in an environment of high cost of living is usually detrimental to a country’s overall economic growth.

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In an environment characterised by high unemployment and escalating living costs, the Kenyan government’s decision to raise taxes poses a significant threat to the country’s economic growth. Increasing taxes in such a precarious economic landscape risks exacerbating financial burdens on both citizens and businesses, potentially leading to a deeper economic downturn.

This strategy could affect consumption, hinder investment, and ultimately result in a declining GDP.

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Note: The results are not exact but very close to the actual.