Citizens’ views on Economy and Taxation: Afrobarometer Round10 Survey in Kenya

‘59% of Kenyans believe that the economy is headed in the wrong direction, 91 % disapprove of the increased tax on petroleum products while 71% disapprove of the housing levy.  59% of Kenyans blame the government’s poor management of the economy for the current increased cost of living. 46% of Kenyans think that “most” or “all” tax officials are involved in corruption, a 12-percentage-point increase over the past decade.Health ranks as the most important problem that Kenyans want their government to address, followed by the increasing cost of living and unemployment.'

This was announced by the University of Nairobi’s Institute for Development Studies (IDS), Afrobarometer’s core partner in Eastern Africa while holding a stakeholders’ dissemination of the Round 10 survey research findings in Kenya on Wednesday, July 24, 2024.

Comparing conditions from April 2023 to April 2024, 50% of Kenyans  believe that  the economic situation has worsened, though personal living conditions have deteriorated for only 43%. Findings revealed significant insights into how Kenyans perceive the economy as a substantial portion of the population continues to experience high levels of lived poverty. This concept of "lived poverty" encompasses deficiencies in cash income, medical care, food, fuel, and water. According to the data, 43% of Kenyans face cash income deficiencies, 27% struggle with access to medical care, 16% experience food shortages, and significant portions of the population face challenges related to high unemployment rates, inflation, and the rising cost of living as major issues.

A widespread resistance to tax policies and corruption was revealed as Kenyans strongly disapproved of recent tax increases, particularly those on essential commodities like petroleum products and housing levy as the majority that believe most or all tax officials are involved in corruption, a 12% increase over the past decade. Additionally, less than half of the sample felt that the government use tax revenues for the well-being of its citizens, indicating a significant disconnect between tax collection and the perceived benefits derived from those taxes.

Every two years, Afro barometer conducts extensive surveys to capture citizens' views on various issues, including the economy and taxation. The recent round of data collection which was conducted between 11th of April and that May of this year was collected through face-to-face interviews using the household as the point of entry, involved 2,400 citizens, with additional oversampling of 300 young adults aged 16 and 17 to gauge youth perspectives. This approach ensured that the data reflected a broad cross-section of society, including diverse age groups, genders, and educational backgrounds.

The Afrobarometer report emphasized the need for a comprehensive approach to address citizens' economic concerns, including job creation, inflation control, and an improved business environment. In regards to taxation, it was recommended that increased transparency and demonstrating the effective use of tax revenues could help rebuild trust in the tax system. This could be achieved by regular public reporting on tax collection and expenditure, as well as putting up measures to combat corruption within tax authorities.

Access the data on the Afrobarometer website: https://www.afrobarometer.org/