The Sh100 billion tax proposal targeting Kenya's super-rich

National Tax Payers Association (NTA) CEO Patrick Nyagweso when sharing the Wealth Tax Study Report while seeking the adoption of its recommendation at a Nairobi Hotel on September 24, 2025. [Kanyiri Wahito, Standard] The National Taxpayers Association (NTA) is lobbying for the introduction of a 'net worth tax' on the superrich with the aim of netting in excess of Sh100 billion from the individuals. The proposal contained in a report by NTA, The Potential and Justification for Taxing Wealth in Kenya, argues that this move would be a considerable way of mobilising resources domestically, compared to leaning on debts. The data presented in the report shows the government through Kenya Revenue Authority (KRA) can raise upto Sh101.5 billion ($780 million) with a progressive tax rate of between 1.5 per cent to five per cent. These figures are based on the 7,216-dollar millionaires in the country, according to 2024 Africa Wealth Report. This figure has since dropped to 6,800. The report proposes that high net worth individuals holding between Sh130 million ($1 million) and Sh390 million ($3 million) be taxed at 1.5 per cent rate. Those in the Sh390 million ($3 million) and Sh13 billion ($100 million) bracket to be taxed at three per cent and those above Sh13 billion ($100 million) will pay at five per cent tax rate. This will give KRA an estimated revenue of Sh101.5 billion annually. NTA says in the report that this revenue would be transformative for Kenya's development agenda, adding that it could fund critical areas such as education, healthcare, and infrastructure, which are essential for reducing inequality and promoting inclusive growth. "Implementing an annual wealth tax, rather than a one-off measure, could provide a sustainable source of funding for these initiatives. It would also serve as an ongoing mechanism to address wealth concentration, which the income inequality data suggests is a persistent issue in Kenya," the report adds. Dr Layla Latif, a researcher and the tax expert behind the report, says the conversation around taxing the wealth is not new as there are countries such as Uruguay, Switzerland, South Africa, Burundi, Algeria and Spain which have either implemented a form of it or are mulling such a regime. "The conversation around wealth tax is not new. There are lot of countries especially in Europe even Latin America that have imposed a tax on wealth. The discussion we are now having on wealth taxation is not to look at the transfer taxes that are seen as a form of tax on wealth," she said at the launch of the report on Wednesday. She noted that such levies only come into force when wealth exchange hands, for example when shares are transferred for capital gains tax, which may not adequately capture the superrich. She said the proposal seeks rather to assess the wholesome wealth of an individual and apply the appropriate rate. "We are not talking about taxing transfer of wealth. We are talking about taxing net worth. It is looking at your cumulative wealth minus the liabilities and impose a tax on that," she said. NTA Chief Executive Patrick Nyangweso said even a one per cent tax rate on the superrich would go a long way in offsetting the country's budget deficit that always has to be filled with debts. This financial year (2025/2026) budget deficit stands at Sh923 billion. "KRA can draw over Sh100 billion annually (from net worth tax). There are several Kenyans in this bracket but KRA has mapped 841. We think there are serval others who can be brought in," he said. Nyangweso said such a tax would safeguard the social welfare of lower- and middle-income individuals. He pointed out that in Kenya, data has shown that the top 10 per cent super rich hold more than 40 per cent of the country's wealth. "Yet much of this remains outside the tax net. We need to consider domestic resource mobilisation by considering wealth tax," he said.

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