| Sumario: | Since September 2022, the government of Kenya has been implementing policy measures under its “Bottom-Up Transformation Agenda (BETA)”. Alongside measures aimed at promoting economic recovery and improving livelihoods, the government is also redesigning revenue mobilization instruments geared towards fiscal consolidation and supporting economic growth. These interventions have already yielded some progress. For example, the latest GDP report indicates that Kenya’s economy grew by 5.9 percent in the third quarter of 2023 – up from 4.3 percent in the same quarter in 2022.
To enhance revenue mobilization and raise taxes, the government has started to implement the National Tax policy and the Medium-Term Revenue Strategy (MTRS) for fiscal years 2024/25 to 2026/27. This is expected to raise tax collections from its current 16.0 percent of GDP in 2023/24 to above 20 percent over the medium term.
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