| Sumario: | Kenya’s Medium-Term Revenue Strategy (MTRS FY2024/25-2026/27) which aligns to the Fourth Medium Plan (MTP 2023-2027), aims at raising sufficient resources for the delivery of Government’s priority programmes under the Bottom-up Economic Transformation Agenda. The strategy provides a comprehensive approach of effective tax system reforms to boost revenue collection and improve the tax system over the medium term.
In Kenya, taxes form major source of government revenue for delivery of essential public services, and a policy tool to influence economic behavior, promote equity and achieve developmental goals. For instance, in the financial year 2023/2024, taxes accounted for 85.5 percent of total government revenue (National Treasury, 2024). Given the expansion of fiscal expenditure demands, optimizing Kenya’s major tax revenue sources is essential to achieving a sustainable balance between revenue generation and minimal distortion on economic welfare.
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