Pandora Papers should result in changes to spur investment
This photograph illustration shows a woman's shadow cast on the logo of Pandora Papers, in Lavau-sur-Loire, western France, on October 4, 2021.
What you need to know:
- Having large amounts of money in foreign accounts denies Kenya much needed investment funds.
- There is need for those who are capable to be willing and happy to invest in the country.
The recent investigations by journalists from all over the world dubbed the Pandora Papers have exposed scores of world leaders who have allegedly stashed large amounts of money in foreign accounts.
Even though the constitution provides for having accounts and investments in foreign accounts, financial transparency and openness is required.
But having this cash in foreign accounts denies Kenya much needed investment funds. Investing in the country and encouraging the same will go a long way in benefiting fellow Kenyans. This is because the taxes will make their way back to the citizens via beneficial avenues such as development projects, salaries and youth empowerment programmes
So, what can be done?
To start with, the current tax requirements in the country are many, and the taxes also quite high. This has made wealthy individuals whose investment in the country would help the economy a great deal to prefer tax havens.
High production costs should also be looked at, considering that these are crucial to investment decisions. Currently, materials are expensive, and so is power. Recently, the costs of electricity and fuel have gone up steeply, effectively raising the cost of living.
The recent initiative imploring the citizens to buy Kenya and build Kenya will only be successful if there are actually existent products to turn to in the first place. Hence there is need for those who are capable to be willing and happy to invest in the country.
The country has a vision of goals it should achieve by 2030 towards outgrowing its current Third World status. For this to bear any fruit there is need to ensure that the business environment is favourable to investors who are critical for development and job creation.
Kenya has made significant steps that are political and economic in nature that have resulted in social and economic growth. However, a weak private sector and low investments coupled with internal and external shocks are the main factors hindering development in terms of investments within the country.
Pascals Kris is a student at Maseno University.
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