The debt rating agency Moody's has just downgraded Kenya to B3 as investors consider it more likely that Kenya will default on its debt. Increasing VAT from 16 to 18 percent would generate at least Sh65 billion in extra revenue for the KRA and be paid by all Kenyans according to how much they consume. Increasing VAT to 18 percent would also harmonise sales tax with Uganda and Tanzania who have repeatedly complained that Kenya is undercutting them with lower rates. Increasing VAT to 18 percent will still be inflationary but at least it will be paid by all Kenyans, and not just those in the formal sector. Quote of the day: "If you want to steal, steal a little cleverly, in a nice way.

Source: The Star May 16, 2023 12:49 UTC