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Shirikisho Party of Kenya, P.O. Box 84648-GPO 80100 Mombasa Office, Githere Plaza, first floor Haile-Selassie Avenue.

Economy and Taxation

The problem.
The economic situation in Kenya is not desirable. The gap between the rich and the poor is very wide. The majority of Kenyans live below the poverty line. The rate of unemployment is alarming. Consequently the cost of living is very high. This has reduced the tax base hence revenue collection is very low, resulting in poor development initiatives. The situation is made worse with the adoption of unchecked free market economy policies and the liberalization of essential services initiative. This has led to the reduction of jobs in the civil service. Further huge government expenditure in luxuries such as expensive fuel guzzling vehicles, unnecessary overseas trips, seminars and workshops in five star hotels by senior government officials has negatively affected the country’s economic growth. Duty and tax evasion by politically correct people has increased the problem by denying the government huge income.


Although Kenya is an Agricultural country it lacks clear agricultural policy which will guarantee it’s growth. Poor planning has led to many problems such as rural urban migration due to lack of industrial and infrastructural development in rural areas. Consequently, this has led to overcrowding in urban centers and major towns thereby increasing the rate of crime and poor service delivery by the government and local authorities. Further, poor planning in the management of natural disasters has resulted in frequent destruction of property and loss of lives by floods, drought and other natural calamities.


As a consequence, we have poor infrastructure, increased inflation rate, high lending interest rates, and inability of local industries to compete effectively with multinational companies. State corporations and financial institutions have collapsed due to endemic corruption, mismanagement, And political interference.
In addition, the county’s taxation policy is not well developed as the people have no power to own, control or decide on the tax revenue collected by their government leaving a few misinformed people to undertake such an onerous task. There are no clear criteria on how the tax money is allocated resulting to unequal and un-equitable distribution of development resources. The taxing formula does not distinguish the poor from the rich resulting in broadening the tax burden to the poor rather than the rich.


High taxation on essential commodities, services and raw materials has led to high cost of living. Kenyans are a highly taxed or overtaxed as they are made to pay various indirect taxes resulting in double or multiple taxation. Poor economic policy has placed some areas as high potential and ignored others which are arid or semi arid in terms of financial support thus compounding the problem.

In addition to the aforesaid, the life of the local mwananchi has become difficult due to frequent increase of the prices of essential commodities and services. Price increases have been compounded by the liberalization of oil industries and the frequent power fluctuations.


At independence the country had formulated the best policies in ensuring the economic growth of the people. For example it came up with public financial institutions to support various economic sectors such as Agricultural Finance Corporation to support small-scale farmers, Industrial & Commercial Development Corporation to support local and small business enterprises. However lack of political will, tribalism, cronyism, nepotism and corruption killed this dream.


Policy vision
The party seeks to have a vibrant , robust and prosperous economy where the gap between the rich and the poor is negligible, unemployment rate is reduced to a manageable level, and the cost of living is affordable. This will result in expanded tax base boosting the national revenue collection. Consequently there will be increased development initiatives. We also want to put in place check and balances to the free market and liberalization concept in order to protect the poor and the destitute together with the local industries. In effect we have quality infrastructure, strong currency, low lending interest rates and protection of local industries and consumers. Revived public financial institutions to assist local and small-scale inter-perjure.


Shirikisho will:

1. Adopt a social ecological market economy, which appreciates the role of the market but within the framework of securing the basic and social needs of our people taking into consideration the protection and improvement of our environment. In saying so we believe that the provision of essential services is the  responsibility of the Government but not for the market to determine.


1. The report on the national conference on equality and growth prepared by society for International Development  East Africa, Action Aid International Kenya, Swedish International Development Cooperation Agency and the African Women and Child Feature services indicates that the rich control almost a half of the country’s wealth while the poorest Kenyan own less than one percent of the national income. Only 10 percent richest households control. 42 percent of the nation income with 10 percent of the poorest households controlling less than one percent. This shows that Kenya is among the most unequal societies.


Some of these services are provision of quality health services, quality education, water, infrastructure and security. In addition it is the sole responsibility of the government to protect and improve the environment. Before undertaking any economic activity environment issues of community interest should be the determining factor but not market forces.

2. Develop a progressive taxation system, for purposes of distinguishing between the rich and the poor.

3. Decentralize tax collection and utilization in line with a federal governance system.

4. Formulate clear tax collection systems that protect the people from over taxation(i.e. double or multiple taxation).

5. Amend, review, alter and or replace the constitution in order to provide the constitutional and legal regime to achieve the party objectives.

6. Ensure that 70% of the tax collected from each Region is retained by that Region for the development purposes.

7. Make public all the revenue collected according to each category of tax levied such as road levy, income tax, land rates, etc from each Region for purposes of informing public to enable the monitor it’s utilization.

8. To ensure all development planning statistics and all necessary information is decentralized to the Regions and be accessible to the public.

9. Ensure that the people managing state corporations and finance institutions are professionals and people, of integrity. It will formulate a policy, which will de-link political interference in the running of the affairs of those institutions. This will make their management fully responsible and accountable in their performance.

10. Eliminate all luxury government expenditures.

11. Maintain the autonomy, independence, professionalism and integrity of the tax collection authority.

12. Ensure that government resources are equally and equitably distributed to all Regions.

13. Reclaim arid and semi-arid land through irrigation and water supply.

14. Involve the local communities in all development initiatives in their areas.

15. Promote a zero taxation policy on raw materials for essential commodities manufactured locally.

16. Introduce a maritime policy and form a fishing Authority that will promote the fishing industry.

17. Ensure that the infrastructure both in rural and urban areas is improved and empower the local community in maintaining it, hence attract both local and foreign investors. This will lead to reduction of rural-urban migration.

18.  Reduce the inflation rate of the workers by formulating a policy, which will increase the bracket of tax relief.

19. Ensure that the prices of all essential commodities are controlled.

20. Formulate a policy, which will all other players in generation and distribution of power, to guarantee constant and affordable power supplies.

21. Ensure that the prices of oil products are under control, and also make provisions, which will allow other local independent players, participate in the industry.

22. Create an environment which will allow growth of industries in rural areas where the raw materials are found e.g. leather and meat plant in the pastoralists areas, tropical fruits plants at the Coastal area etc

23. Empower the local authority to collect and benefit from the revenue they collect from the resources at their jurisdiction, for example, sources of water, minerals, etc so that they can deliver quality services to the residents.

24. Introducing or reviving public financial institutions to support local and small scale entrepreneur.