‘When you buy a token of Ksh50, Ksh20 goes to taxes’ – Morara deconstructs Ruto’s job creation plan

As President William Ruto touts his administration’s efforts to create jobs and stimulate industrial growth, activist Morara Kebaso has raised a sharp critique of one of the country’s most pressing economic issues: the soaring cost of electricity.

In a televised interview on Friday, December 13, 2024, Morara dissected the barriers to job creation, pointing to high energy costs driven by what he described as state capture and over-taxation.

He argued that the government’s current approach was undermining Kenya’s potential for industrialization and economic growth.

“The first thing that is a problem in our country is the cost of power. Why do we have high power costs? Two reasons – state capture and over-taxation,” Morara said.

The hidden tax burden

Using a simple analogy to highlight the issue, Morara Kebaso explained how heavily taxed electricity tokens are squeezing ordinary Kenyans.

“When you buy a token of Ksh50 bob, 20 bob is taxes,” he revealed, underscoring how nearly half of the cost is siphoned off by taxes.

“If President William Ruto wishes Kenyans well and wants Kenyans to have more jobs, the best way to create jobs is usually industrialization, and industrialization is driven by energy and power,” Morara added.

Morara urged the government to reduce electricity taxes as a practical step toward job creation, suggesting that lowering the tax burden could make energy more affordable for businesses and spur industrial growth.

“Why not reduce the cost of power so that this 20 bob out of 50 bob, which is taxes, does not become taxes anymore? Why not reduce the tax on power?” he posed.

Morara Kebaso’s comments come amid ongoing debates about Kenya’s economic direction under Ruto’s administration.

While the president has prioritized job creation as a cornerstone of his agenda, critics argue that high energy costs and taxation policies are stifling industrial investment and competitiveness.

Electricity tariffs in Kenya are among the highest in the region, a significant barrier for manufacturing firms and small businesses alike.

PD Digital purchased an electricity token worth Ksh50, and as Morara pointed out, Ksh20 was deducted for additional charges.

Below is the breakdown of the message received from Kenya Power following the purchase of the Ksh50 token.

Mtr:14367685***
Token:2565-0087-2803-7210-8***
Date:20241213 08:02
Units:2.5
Amt:50.00
TknAmt:29.97
OtherCharges:20.03
For Details dial *977#

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