Date Written: September 24, 2025

Abstract

This policy brief examines the proposal for introducing a progressive wealth tax in Kenya to address extreme inequality, where the wealthiest 10 per cent control nearly two-thirds of national wealth while half the population possesses barely 4 per cent. The analysis evaluates a graduated taxation system targeting the high-net-worth individuals identified by the Africa Wealth Report 2024[1] as approximately 7,200 dollar millionaires, representing merely 0.014 per cent of Kenya’s population which, through simulated estimations, could potentially generate $781 million annually through rates ranging from 1.5 to 5 per cent depending on estimated wealth levels. Drawing upon international precedents and Kenya’s existing tax administration capabilities through the Premier Tax Office, the brief critically assesses both the transformative revenue potential and implementation challenges of such a regime, positioning wealth taxation not merely as a fiscal instrument but as a mechanism for achieving more equitable development outcomes within Kenya’s constitutional framework of progressive taxation and social justice.

Keywords: Wealth Tax, Kenya, Billionaires, NFT, Crypto, Real Estate, Spain, Norway, France, Argentina, Colombia, Algeria, Uruguay, Burundi, Zimbabwe

Suggested Citation:

Latif, Lyla, Implementing a Wealth Tax Regime in Kenya (September 24, 2025). Available at SSRN: https://ssrn.com/abstract=5523519 or http://dx.doi.org/10.2139/ssrn.5523519