Former Cabinet Secretary Eliud Owalo has ignited Kenya’s political landscape with a game-changing tax reform promise, vowing to drastically reduce burdensome levies if elected president in 2027. In a fiery declaration, Owalo pledged to cut income tax from 35% to 20%, slash VAT from 16% to 10%, and lower the controversial housing levy from 1.5% to 0.5%, branding current rates as “punitive taxation” that stifles economic growth.
“If you elect me as President of the Republic of Kenya, I will bring down income tax from 35% to 20%, VAT from 16% to 10%, and housing tax from 1.5% to 0.5%. I want to eliminate punitive taxation,” Owalo stated emphatically during a recent interview. The announcement comes hot on the heels of his resignation as Deputy Chief of Staff for Delivery and Government Efficiency in President William Ruto’s administration, signaling his full-throttle entry into the 2027 race.
Owalo, a seasoned technocrat known for spearheading Kenya’s digital transformation as former ICT Cabinet Secretary, is positioning himself as the champion of economic relief for ordinary Kenyans. With the country’s top income tax bracket at 35%—one of the highest in the region—many salaried workers have felt the pinch, especially amid rising living costs. VAT at 16% has further inflated prices of essentials, while the 1.5% Affordable Housing Levy, introduced in 2023, has drawn widespread criticism for deducting from already strained paychecks.
These proposed cuts could deliver massive relief. For a middle-income earner on KSh 100,000 monthly, reducing the top PAYE rate to 20% might save thousands in taxes annually. Dropping VAT to 10% would lower costs on goods and services, potentially boosting consumer spending and small businesses. Halving the housing levy to 0.5% addresses a key grievance, freeing up disposable income without scrapping the affordable housing agenda entirely.
Economists say Owalo’s plan could stimulate growth by putting more money in citizens’ pockets, encouraging investment and job creation. “This is a pro-people agenda aimed at easing the tax burden that has crippled hustlers,” Owalo emphasized, echoing sentiments from Kenyans frustrated with recent finance bills.
As the 2027 elections loom, Owalo’s tax revolution pledge challenges the status quo, pitting him against incumbents and rivals. Critics may question funding implications for government programs, but supporters hail it as a breath of fresh air in a nation hungry for change.
With his Nyanza roots, anti-corruption stance, and focus on digital jobs, Owalo is emerging as a formidable contender. Will this tax slash propel him to State House? Kenyans are watching closely.
