- Elected officials in many countries serve as public servants, but whether they pay their fair share of taxes often arises.
- In Kenya, there has been a significant debate over the years on the payment of tax by Members of Parliament (MPs).
- It is not only a matter of legal obligation but also one of public perception and trust in the political system.
So, do MPs pay tax in Kenya?
Brief History
Before 2010, Kenyan MPs were exempted from paying taxes on a significant portion of their income, particularly allowances like sitting and housing, and benefits such as car grants. Instead, they taxed the MP’s basic pay which amounted to Ksh. 200,000.
This tax exemption led to widespread public discontent as the citizens felt it undermined the principle of equal taxation.
Thus, the push for reforms gained momentum in the late 2000s, fueled by public protests and advocacy from civil society organizations, religious groups, the media, etc.
Legislative Changes and Taxation Reforms
There was a turning point with the promulgation of the 2010 constitution. The new constitution introduced comprehensive reforms that enhance transparency and fairness in governance.
One of the key reforms was the requirement by all state officers, including MPs, to pay taxes on their full income. To implement this, the government amended tax laws to ensure that all allowances and benefits received by MPs were subject to taxation.
As expected, the amendments met resistance from some lawmakers, but the pressure from the public and civil society was too strong to ignore.
Current Taxation Framework for MPs
Today, Kenyan MPs have tax cuts on their income, including salaries and allowances.
According to the Kenya Revenue Authority (KRA), MPs remit the same tax rates as other citizens. This means, their taxable income includes their basic salary, sitting allowances, mileage allowances, and any other benefits they receive while executing their duties.
Nonetheless, there are still some exemptions and deductions that apply to MPs, similar to other taxpayers. For instance, per diems received by MPs for official travel are not subject to tax, as long as they fall within the prescribed limits. Also, MPs can claim deductions for expenses incurred on duty like office maintenance and staff salaries.
The KRA is responsible for enforcing tax compliance among taxpayers in Kenya, including MPs. The agency requires all taxpayers to file their tax returns on iTax or by visiting the nearest KRA offices.
Despite these efforts, there have been occasional reports of non-compliance hence the call for stricter enforcement and penalties.
Comparative Analysis
Kenya’s approach to taxing MPs is relatively standard when compared to other countries.
In many countries, elected officials have tax cuts on their entire income; allowances and benefits included. For instance, in South Africa, MPs are subject to income tax on their salaries and allowances.
The Role of Civil Society, Religious Groups, and the Media
Civil society organizations, religious groups, and the media have played a vital role in pushing for tax reforms and monitoring compliance among MPs.
Organizations such as the Kenya Human Rights Commission and Transparency International have been vocal in advocating for accountability and transparency in the taxation of MPs. Religious groups ranging from Churches, Muslims, and Hindus also voiced their discontent with inequality in paying taxes by MPs.
Their efforts included public awareness campaigns, policy advocacy, and legal challenges towards tax law compliance by MPs.
The media has also been instrumental in highlighting cases of non-compliance and bringing attention to the issue of MP taxation. Investigative journalism has uncovered tax evasion instances, and misuse of public funds, leading to increased scrutiny of MPs and calls for greater accountability.
Conclusion
Kenyan MPs are required to pay taxes on their entire income, including salaries and allowances, thanks to the implementation of the 2010 constitution.
It is also a result of years of advocacy, legal reforms, and public pressure led by religious groups, civil organization groups, and the media.
As Kenya moves forward, the commitment to achieving tax equality remains vital in fostering a more just and equitable society where every citizen, regardless of status, contributes their fair share to the nation’s development.