World Bank warns Kenya on new taxes

The World Bank Group headquarters building in Washington, DC

The World Bank Group headquarters building in Washington, DC, on April 9, 2023. PHOTO | AFP

The World Bank has warned Kenya against tax increases in the coming fiscal year, saying it may end up slowing down economic activity and growth.

In its latest Kenya Economic Update (KEU), the bank said at the current rates, tax revenues have already recorded a modest growth, but at the expense of economic activity, resulting in “sluggish growth in employment and household consumption”.