Ruto Woos American Billionaires with Friendly Taxes

President William Ruto went on a charm offensive during high-level investors meeting of Atlanta-based companies on Tuesday, May 21 in the U.S.

In his pitch to the top American tycoons and executives, Ruto made a case for Kenya as the best investment destination, in different sectors, including housing, manufacturing and ICT among others.

Notably, Ruto who became president in September 2022, detailed how his administration has laid the foundation for a conducive business environment for foreign investors.

Despite the ongoing tax debate in Kenya that has earned him the nickname ‘Zakayo’, Ruto wooed America with his ‘friendly’ tax regime that would allow them to thrive in Nairobi. 

“Recognizing that private sector players require predictable policies, including tax policies, for long term investment decisions, Kenya has been updating tax policy guidelines since 2023 to enhance the predictability of our tax regime.

We are committed to continue the regime for a minimum of three years,” said President Ruto.

Also Read: List of Journalists Who Flew with Ruto to US

Ruto on Taxes

At the same time, Ruto mentioned the review that was made on the Digital Services Tax regime that aligned it with the Organization for Economic Cooperation and Development (OECD) inclusive framework. He added that VAT on exported services was no longer payable.

According to President, the verified tax refund claims would be processed within six months.

“We have reviewed our Digital Services Tax regime, aligning it with the Organization for Economic Cooperation and Development (OECD) inclusive framework.

VAT on exported services is no longer payable, and verified tax refund claims will be processed within six months, failing which taxpayers can offset their claim against future tax liability without further application to the Kenya Revenue Authority,” he said. 

Furthermore, the head of state explained how and why start-ups thrive in Kenya, asking American billionaires to pitch camp in Nairobi. 

“Start-up companies are now exempt from paying taxes due from unrealized gains on employee-allocated shares,” President Ruto added.

Also Read: Ruto to Exempt Kenyans Abroad from Paying Tax

Commitment to Kenya’s success 

Contrary to how Kenyans see it, Ruto asserted that his commitment to making Kenya one of the most attractive places to do business had paid off.

He went ahead to state that Kenya has been ranked the third most attractive place to do business in Africa by the World Bank and will continue building on its success.

“Our commitment to making Kenya one of the most attractive places to do business has already borne fruit. Kenya has been ranked the third most attractive place to do business in Africa by the World Bank, and we are continuing to build on this success story.”

Similarly, Ruto commended U.S Ambassador to Kenya Meg Whitman for being a friend of Kenya.

“Ambassador Whitman continues to be a great friend of Kenya and a tireless champion of US investors. Her round-the clock involvement has enabled us to make quick progress in our dialogues, and in implementing our consensus.”

He concluded, “The case I make is straightforward: Kenya works, and Kenya means business. As long as you are talking investment, we are ready for you and, together, we shall make your vision come to life. Welcome to Kenya.”

State Visit

Ruto arrived in Washington, D.C. on Wednesday morning where he is expected to meet the Speaker of the United States House of Representatives Mike Johnson at the United States Capitol.

State House revealed that he will also engage the U.S. Senate Leadership led by Majority Leader Charles Schumer and address a Black Caucus at the Library of Congress.

On Thursday, he will be at the White House for the State Visit, where he will be hosted by President Joe Biden

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