'Don't gamble with tax', private sector tells Ruto

The Association of Kenya Insurers (AKI) warned that the proposed Motor Vehicle Tax would see more people opt to take third party insurance covers that offer little protection to vehicle owners but also reduce income for the insurance industry.

"This tax will reduce demand for comprehensive insurance as a market response to the increased costs of motor vehicle ownership. To offset the increase in costs associated with the insurance of motor vehicles, policyholders will shift to third party insurance covers which will significantly reduce the premiums and income earned by insurance companies," said AKI.