Kenya business leaders demand tax cuts and lower interest rates

Private sector leaders in Kenya are calling for significant fiscal and monetary reforms to stimulate economic growth and reduce operating costs. The Kenya Bankers Association (KBA) has proposed a universal five-percentage-point reduction in Pay As You Earn (PAYE) tax across all income brackets. KBA Chief Executive Raimond Molenje argued that such a cut would increase disposable income, boost consumer spending, and help restore public confidence in the government.

In a separate push for economic relief, a survey by the Central Bank of Kenya (CBK) revealed that 600 CEOs are demanding tax cuts and more affordable credit. Business leaders expressed a need for lower license fees, simplified regulatory requirements, and reduced production costs. The report highlighted challenges in accessing financing, with 26.7% of respondents describing bank loan access as difficult or very difficult due to collateral requirements and lengthy approval processes.

To improve competitiveness, CEOs urged the government to introduce predictable tax policies, consolidate national and county permits to reduce bureaucracy, and invest in energy, transport, and digital infrastructure.