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Kenya: Institutional Support for Tax modernization


From the time of independence in 1963 and up till the mid 7Os, the Kenyan economy enjoyed relatively good economic performance. But from the mid 7Os, the economy, along with most African economies, started to experience major economic difficulties. It was in response to these difficulties that the government launched in 1986, a .. growth-oriented structura! adjustment programme, the contents of which are spelt out in the long-term planning document “Economic Management for Renewed Growth”. The document had, among its goals, the restoration of economic growth, the enhancement of the capability of the government to mobilize domestic financial resources in order to meet increasing public expenditures, and the diversification of the sources of revenue in order to reduce the dependence of the government on tax receipts from direct taxation. In terms of measurable indicators, the programme aimed at raising the proportion of revenue in GDP to 24 per cent over a number of years in order to permit expenditure to grow at an average rate of 5 per cent per annum from 1984/85 to 1999/2000.

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