Eliud Owalo Sends Strong Message to Ruto as He Demands Scrapping of Digital Taxes

Former Deputy Chief of Staff Eliud Owalo has called for the scrapping of digital taxes and reductions in income tax and Value Added Tax, arguing that Kenya needs a more taxpayer-friendly system to ease the rising cost of living.

In a statement shared on his X account on Thursday, October 29, 2026, Owalo urged the government to review its taxation policies to leave Kenyans with more disposable income and create opportunities for businesses, particularly those operating in the digital and creative sectors.

“Lower income tax, reduce VAT and eliminate digital taxes to put more money in Kenyans’ pockets,” Owalo stated.

He further argued that taxation should promote economic growth instead of placing excessive financial pressure on households and businesses.

“Our tax policies must stimulate economic growth, not stifle it,” he added.

Owalo’s proposal to eliminate digital taxes comes at a time when online businesses, content creators and digital entrepreneurs are increasingly contributing to Kenya’s economy.

Many young Kenyans depend on digital platforms to generate income through content creation, online marketing, freelance services and other internet-based activities.

According to Owalo, reducing the tax burden could help unlock opportunities in the sector while encouraging innovation and entrepreneurship.

His proposal also targets income tax and VAT, which affect workers, consumers and businesses across different sectors of the economy.

Lower income taxes could allow employed Kenyans to retain more of their earnings, while a reduction in VAT could potentially ease the cost of goods and services, depending on how businesses respond to the changes.

Owalo’s latest remarks also come as the Kenya Revenue Authority continues expanding digital tax administration, enabling taxpayers to file returns, make payments and access services online.

However, challenges involving system disruptions and misleading tax notices have highlighted the importance of reliable services and clear communication between tax authorities and the public.

The former government official’s proposals add to the ongoing debate over how Kenya can balance revenue collection with the need to protect household incomes and encourage investment.

As the country approaches the 2027 General Election, taxation and the cost of living are likely to remain important economic and political issues.

Owalo’s proposals place tax relief at the centre of his message, although implementing the changes would require a clear plan for maintaining government revenue and financing public services.

https://peopledaily.digital/news/owalo-wants-digital-taxes-scrapped-pushes-income-tax-cuts?fbclid=IwY2xjawVP9INleHRuA2FlbQIxMQBwZG9mAXNydGMGYXBwX2lkDDM1MDY4NTUzMTcyOAABH0PKksSlYBQZHapZPF9opW3FS5CPPjhAwIrNMtjJEIzCwtvo-m46vAUBOCuL_aem_aMChJNaCFYXxrddP5xOyIQ

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