Kenya loses up to Ksh130 billion annually due to ineffective taxation of high-net-worth individuals, a joint report by Oxfam and the Institute of Public Finance (IPF) reveals. The shortfall limits funding for essential public services, including the Ministry of Health.
The analysis highlights that gaps in Kenya’s tax system allow the wealthiest to avoid paying their fair share. The top 10 per cent of the population holds 62.8 per cent of net personal wealth, while the bottom half collectively controls only 4 per cent. Consumption taxes remain regressive, disproportionately affecting low-income households.
IPF CEO James Muraguri noted that despite measures like capital gains and rental income taxes, these are often ineffective and fail to yield significant revenue. The report warns that without reforms targeting the wealthy, Kenya will continue losing billions, worsening inequality, and constraining the government’s ability to provide essential services.
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