World Bank recommends tax reforms for Kenya
By the AFREEQUE newsroom, based on Tuko
The World Bank identifies high public-sector wages, weaknesses in public procurement and governance problems as constraints on Kenya’s revenues and spending efficiency. Its 34th Kenya economic update recommends reviewing tax exemptions and better targeting social assistance, according to Tuko.
The World Bank recommends that Kenya review tax expenditures, strengthen tax progressivity and better target social assistance to improve the fairness of its fiscal policy, according to its 34th economic update on the country.
The report also notes that high wage expenditure reduces the resources available for development and frontline services. It highlights weaknesses in payroll and public procurement controls, fragmented cash management, the accumulation of arrears and governance problems. The World Bank also links corruption practices in counties to public spending efficiency, with administrations reporting higher rates of corruption generally recording poorer results.
