Home General President Ruto, Kenyattas in Tax War: Battle Lines Drawn

President Ruto, Kenyattas in Tax War: Battle Lines Drawn

by kenya-tribune
11 views

NAIROBI, Kenya Feb 4 – President William Ruto and retired President Uhuru Kenyatta have reignited their rivalry, appearing as the revival of a political ‘Tax drama-filled series’ that took a hiatus.

The former allies-turned-bitter foes have recently signaled the revival of their animosity through statements, echoing the dominance it once held in the political arena ostensibly during retired President Kenyatta’s second term.

The tax issue has fueled their animosity after President Ruto allegedly accused certain unnamed individuals who served in the previous government of trying to undermine his government to avoid paying taxes.

“This nation does not practice inequality among its citizens. We aim to establish a society where every individual contributes their fair share towards tax increases,” said Ruto.

The Head of State spoke on January 30, 2022, while addressing the National Assembly Post-Election Seminar in Mombasa county.

President Ruto, in a thinly-veiled attack, accused his predecessor of funding veteran opposition leader Raila Odinga as part of a broader plan to undermine his government and divert its focus from ensuring that all Kenyans pay taxes.

“I assure sponsors of demonstrations who evade taxes that their tactics will no longer succeed. No exemptions will be granted. This nation does not favor some over others,” he declared.

In the August 2022 presidential election, former President Kenyatta supported Odinga, the leader of Azimio, as his preferred candidate, sidelining his then-deputy Ruto. Nonetheless, Ruto eventually emerged victorious and became the president.

-Uhuru fights back-

Former President Kenyatta, in a rare response after leaving office, spoke out a day after his successor’s comments and asked President Ruto to curb excessive talking and concentrate on delivering services.

Advertisement. Scroll to continue reading.

The former President responded to the attacks on his family by noting that he remained untroubled despite the government’s plan to conduct a tax audit on his family properties.

“Do not mind these people who are making unnecessary noise. Let them shout. People who have nothing else to do must always make noise,” he said.

It was the first time for the former President to hit out at his former deputy five months after the 2022 high-stake polls.

The retired President observed that the current regime talks big but acts little.

“There are people who talk a lot about what they will do and do nothing and those are many,” he said.

The two leaders who had camaraderie in 2013 severed ties in 2018 when former President Kenyatta joined forces with Odinga and shook hands in March 2018.

The alliance between Kenyatta and Odinga, which led to the need for constitutional reforms in the country, caused a rift between former President Kenyatta and his then-deputy Ruto, who strongly opposed the changes.

President Ruto’s open defiance then compelled his former boss to endorse Odinga as his successor in the 2022 presidential election.

Despite being Odinga’s fifth bid for the presidency, he lost to President Ruto. The former Prime Minister alleges that his victory was stolen.

Advertisement. Scroll to continue reading.

After failing in his Supreme Court petition challenging the election results, the former Prime Minister maintains that President Ruto’s win was “illegal.”

As a result, he has pledged to organize demonstrations as a means of seeking justice for his perceived stolen victory.

Tax Law: Estate Duty Act-

The tax dispute between President Ruto and his predecessor intensified after Senator Samson Cherargei from Nandi petitioned the Senate Clerk to modify the old law that granted former Presidents Jomo Kenyatta and Daniel Moi tax exemptions.

Kenya’s founding President Kenyatta signed the Estate Duty Act into law in 1963.

In his petition, the Senator wants Section 7 (3) of the Act that protects the former President’s Estates from tax exemption deleted.

“The proposed amendment seeks to remedy the unconstitutional and illegal legislation, establish fairness in the taxation system, and ensure equal treatment under the law for all Kenyans.”,” he said.

He is proposing to have people with disabilities, minorities, and the marginalized enjoy the exemption instead.

“The relevant law shall exempt the disabled, minorities, and marginalized from this section,” shall replace “This section shall not apply to Mzee Jomo Kenyatta or Daniel Toroitich Arap Moi.”

The tax dispute that has pitted President Ruto against his predecessor caught the attention of former First Lady Mama Ngina Kenyatta, who on Saturday in a rare outburst denied claims that the Kenyatta dynasty is avoiding taxes.

Advertisement. Scroll to continue reading.

She challenged the government to auction the Kenyatta properties if they failed to pay taxes.

 “There are procedures on matters of taxes and one cannot avoid paying taxes because it is illegal,” she said.

“If all these reports are true then they should reclaim the money from the businesses,” she added.

Article 210 of the Constitution sub-article 3 “no law may exclude or authorize the exclusion of a State Officer from payment of tax by reason of the Office held by the State officer or the nature of the work of the State officer”.

As the tax debate rages on, others like Constitutional Lawyer and Senior Counsel Ahmednasir Abdullahi are waiting to see how things will unfold.

Advertisement. Scroll to continue reading.

You may also like