Fuel Tax Debate: You Must Pay to Enjoy Services, Secure Future, Equity CEO James Mwangi Tells Kenyans

Equity Bank Chief Executive Officer (CEO) James Mwangi has urged Kenyans to stop complaining about increased taxes.

Reacting to the 16 percent Value Added Tax (VAT) imposed on fuel products by the government in order to close revenue deficit, Mwangi said Kenyan must embrace taxation if they aspire to be a globally competitive nation in the near future.

The hiked fuel prices sparked outrage from Kenyans and leaders who continue to pile pressure on President Kenyatta to assent to the Bill pushing the implementation of the 16 percent VAT on fuel to 2020 citing the already high cost of living.

However, Mwangi argues that postponing the move will not be a solution, adding that Kenyans must pay taxes if they are to continue enjoying services such as a ride on standard gauge railway. 

“Essentially what we are seeing is the cost of transformation. We can’t wish and enjoy a ride on the standard gauge railway line but we are not willing to tighten our belts,” Mwangi said on Monday.

He called on Kenyans to put emotions aside and look at the long-term benefits of the tax as postponing won’t solve the economic challenges facing the country.

“As a generation, we may need to pay a bigger price for our children. We can’t keep on postponing. Two years is just like a flick of time, it will be here with us [and] we will still push it like we pushed it two years ago,” Mwangi said.