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William Ruto’s Government To Charge Farmers A Tax Of 5% For Every KSh 100 They Earn Selling Crops.

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The Kenya Kwanza administration was reported that, it wants every farmer to pay a withholding tax on agricultural produce at a rate not exceeding 5% of the value of the produce delivered to the market.

Minister of Finance Prof. Njuguna Ndung’u, in the medium-term income strategy, wants every farmer who takes his produce to the market to pay KSh 5 for every KSh.100 earned from sales.

According to CS Ndung’u, the agricultural sector is not taxed, but it is the largest employer compared to other sectors.

“Kenya’s economy is dependent on the agricultural sector, contributing an average of 21.2% of GDP and the largest employer compared to other sectors,” Ndung’u’s document says.

The Finance Minister acknowledged that the agricultural sector has unique challenges, such as informality, which can make tax collection difficult. However, the Minister said the government will put in place appropriate methods to raise higher taxes from Kenyan farms.

The minister said the Kenya First administration will strengthen taxpayer education to ensure that taxpayers understand their role in nation building and the need to pay taxes.

However, the Minister said the government will put in place appropriate methods to raise higher taxes from Kenyan farms. The Minister said the Kenya First administration will strengthen taxpayer education to ensure that taxpayers understand their role in nation building and the need to pay taxes.  

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