File image of President William Ruto.
The Henley Private Wealth Migration Report 2023 has predicted that atleast one hundred investors will leave Kenya in 2023 over new taxes proposed in the Finance Bill 2023.
According to the report, which was released on Tuesday, June 13, the wealthy will leave Kenya in search of nations with lower tax rates.
This indicates the impact of the Kenya Kwanza administration’s eagerness to raise taxes in order to raise more revenue.
The survey also predicts that 100 millionaires are also expected to leave Kenya in 2023, demonstrating that investors are concerned about Kenya’s current situation.
The High-Net-Worth Individuals (HNWI) are particularly drawn to areas of personal freedom and autonomy, according to British journalist and Rector of the Institute for Human Sciences in Vienna, Misha Glenny.
“Political stability is the key metric for those selecting where they want to live, together with low taxation regimes and personal freedom. Until Russia – Ukrainian war comes to an end, both countries will continue to export HNWIs, and this will remain the single largest driver of relocation,” the report read in part.
Rising debt, a broken healthcare system, and a high crime rate are some reasons why millionaires are leaving Kenya, according to Sunita Singh-Dalal, a partner at Private Wealth and Family Offices at Hourani.
Most tycoons who wished to diversify their investments abroad were uncertain due to political unrest during the campaigning period leading up to the August 9, 2022, General Election.
The report included projections for 2023 as well as the most recent inflows and outflows of multimillionaires in 2022.
Henley Private Wealth Migration Report 2022 predicted that Kenya would see a 50% growth of HNWIs over the next ten years .
The President William Ruto in September 2022 directed the Kenya Revenue Authority (KRA) to collect Ksh 3 trillion by the end of June 2023/2024. Additionally, the Authority was told to increase the countries tax collection numbers by double in the next five years.
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