Tax and Inequality Fact Sheet

Jane Muthoni describing her local area and pointing out poor public services in the community. Kawangware, Nairobi, Kenya. Photo Credit: Allan Gichigi
Paper publication date: 
Tuesday, January 17, 2017

The ever-growing wealth inequality between and within African countries threatens both political and economic stability of these countries and could reverse the marginal gains achieved in the last decade. This economic inequality is perpetuated by among other things, non-inclusive, inequitable and unaccountable tax systems characteristic of most countries in Africa. There is need to counter and reverse the trend towards regressive tax policies that has seen the introduction or increased application of consumption taxes that increase the burden on the already disadvantaged low income earners and their families. Equally, in view of increasing wealth concentration in the hands of the richest few as reported in a 2015 Oxfam Inequality Report , it is essential to push for reforms and introduction and enforcement of policies that will encourage the redistribution of income.