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Forcing the government to rethink the levy would reduce the revenue needed to implement President Uhuru Kenyatta's Big Four program – a development program that aims to boost agriculture, manufacturing, health, and construction residential. The tax is part of a series of levies announced by Treasury Secretary Henry Rotich in his annual budget last month to fund record expenditures of 2.53 billion KES ($ 25 billion) for the year. financial year in progress.
The application for a fee of 0.05% According to Einstein Kihanda, president of the Fund Managers Association, amounts exceeding 500 000 KES that pbad through the financial system, qualified by Rotich's Robin Hood tax, could reduce the returns of the pension industry investments up to 5% in a letter to Rotich
"The likely impact of this action is the reduction of the badet, the reduction of private savings and because it actually encourages investors to minimize business activity, a decrease in the liquidity of our financial markets ". whose body of industry represents members who manage 1.2 trillion KES badets.
Rotich said the Robin Hood tax would be used to help fund the health care program planned in the Big Four agenda to provide universal
The Kenyan Bankers Association , the main lobby of the financial industry, filed Monday a lawsuit contesting the constitutionality of the proposals. He stated that the tax was not subject to public participation and that the software used by the banks is not configured to support the charges.
"The results are clearly at odds with the government's financial market development program and the reforms the financial markets that the Treasury has laboriously worked to implement," Kihanda said, urging Rotich to reconsider the situation. introduction of the tax.
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