Kenya needs to increase tax incentive to bring back undisclosed money: Experts

A report found that Kenyan’s has hid out Sh15 Trillion abroad, which is five times the size of the country’s budget.

Kenyan government scheme of repatriating undisclosed money of their citizens in the foreign banks have failed so far. A report by the US think tank, National Bureau of Economic Research found that Kenyans hide out Sh15 Trillion abroad which is five times the size of the country's budget.

The report "Who Owns the wealth in Tax Havens? Macro evidence and implications for Global Inequality" also adds that countries like Venezuela, Russia, Jordan, U.A.E., Kenya, Zimbabwe and Taiwan also have the offshore funds relatively high as their economy.

In 2017 while presenting the budget Henry Rotich the secretary of Treasury gave Kenyans to repatriate the money till June 2019.

Experts are calling to increase the tax incentive for the Kenyan people who want to repatriate their money back to Kenya.

According to investment analyst, Aly Khan who is based in Nairobi said, "Politically exposed wealth probably saw the offshore markets as a safe haven strategy. This is now being reversed. Money is trapped because it cannot exist under the stringent Know Your Customer rules," quoted All Africa.

Kenya which ranks 145 out of 186 countries in the Human Development Index (HDI) has more than 17 per cent of its 49 million population living under USD 1.25 a day. From the past many years, growth in Telecommunication and tourism has given a boost to its economy.