Tax authorities in Kenya have fixed eyes on the country’s thousands of kiosks in its latest round of anti-tax evasion measures. The public reaction so far, however, has been strong.
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Kenya Targets ‘Informal Sector’
Kenya has a high proportion of unbanked citizens, but also mobile micropayment transactions among the world’s highest. The country also grapples lingering corruption, higher up in business.
Small-scale operations such as kiosks, ubiquitous throughout Kenyan towns and cities, make up the overwhelming majority of its workforce. Some 80% of employment is in the “informal sector,” local publication Standard Digital notes.
The paper quoted National Treasury Cabinet Secretary Henry Rotich as saying: “As part of the review of income tax, we are considering the introduction of a presumptive tax for the hard-to-tax segment of the population, including those in the informal sector.”