17Jan, 2022
    Top 5 Wealthiest Kenyans. Kenya Billionaire and Millionaire Wealth Tax: Revenue Estimates

    Using new data from Forbes and Wealth X, Fight Inequality Alliance, Patriotic Millionaires, Institute for Policy Studies and Oxfam have prepared estimates for what wealth taxes on the world’s richest people could raise. We have looked at $USD billionaires, those with $50 million dollars in wealth and those with $5 million dollars in wealth from 66 countries worldwide.  We modelled the annual revenue from an annual wealth tax of 2% for 5 million and above, 3% for 50 million and above, and 5% for $1 billion and above. Actual levels of wealth taxation would be agreed in each country, and these estimates are only indicative, but nevertheless, this shows just how much revenue could be raised.

    Beyond the objective of raising revenue, it is also legitimate to use wealth taxation to fundamentally reduce the total numbers of billionaires and multi-millionaires. With this in mind, in line with the work of Gabriel Zucman, we have also modelled the revenue from a 10% annual wealth tax on the world’s billionaires, which would seek to steadily reduce the total number of billionaires in the world. 

    1.            The Super-Rich and the Pandemic

    There are 1,755 households with a net worth of $5 million (Kshs.567 Million) or more, with wealth totaling $37.1 billion (Kshs.4.2 trillion).

    There are 120 households with $50 million(Kshs.5.67 Billion)  or more with a combined wealth of $17.4 billion(Kshs. 1.97 Trillion).

    Between 2016 and 2021, the number of households with wealth over $50 million (Kshs.5.67 Billion)   increased from 80 to 120. Their combined wealth increased from $12.73 billion Kshs. 1.44 Trillion) to $17.4 billion (Kshs. 1.97 Trillion)., an increase of 36.8%, adjusted for inflation. 

    The five richest people in Kenya, as of November 30th, 2021, are:

    President Uhuru Kenyatta
    1. Sameer Naushad Merali, $790 million (Kshs.89.5Billion)  
    2. Bhimji Depar Shah, $750 million (Kshs.85 Billion)  
    3. Jaswinder Singh Bedi, $680 million (Kshs.77 Billion)  
    4. Uhuru Muigai Kenyatta, $530 million (Kshs.60.2 Billion)  
    5. Mahendra Rambhai Patel, $430 million (Kshs.48.7Billion)   

    2.      The Rich Compared to Everyone Else

     The two richest people have more wealth than 16.5 million Kenyans.

     3.      Annual Wealth Tax

     An annual wealth tax in Kenya would raise $900 million a year(Kshs.102 Billion)    (with rates at 2% on wealth over $5 million (Kshs.567 Million), 3% on wealth over $50 million(Kshs.5.67 Billion),  and 5% on wealth over $1 billion(Kshs.113 Billion),  ).

     A more progressive wealth tax would raise $1.1 billion(Kshs.124 Billion),   (with rates at 2% on wealth over $5 million(Kshs.567 Million), 5% on wealth over $50 million(Kshs.5.67 Billion) and 10% on wealth over $1 billion(Kshs.113 Billion).

     4.      Health Not Wealth: Impact of Revenue on Health Spending

     An annual wealth tax applied to the wealth of multi-millionaires raises approximately $900 million (Kshs.102 Billion)     a year, enough to increase the government health budget by 36% OR reduce households’ out of pocket health costs.

    10Jan, 2022
    How The Use Of The E-voucher System Has Impacted Lives In Mukuru.
    Shadrack Muema redeeming a voucher code with one of the beneficiaries. Photo: Julius Rasat

    Tuko Pamoja (We’re in this together): Project; This is a 12 Months project implemented Jointly by Oxfam WASH and Gender Teams in Partnership with Local based Organisations in Mukuru and Korogocho informal settlements. The project objectives are :-

    • To drive positive behavior change to prevent and contain the spread of Covid-19 and reduce deaths.
    • To protect the lives and livelihoods of survivors of Sexual And Gender Based Violence.

    The project uses an e-voucher system whereby selected beneficiaries receive water, soap, and dignity kits from select shop vendors in the community. Registered beneficiaries get a voucher code through SMS on their registered phone lines and are supposed to visit the vendor for redemption. This process has made it easier for the vendor and the beneficiary by being transparent and ensuring the vendors know who and what to give out.

    Shadrack Mwema, a resident of Mukuru Kwa Reuben, was among the registered vendors in the TUKO PAMOJA PROJECT.

    According to Shadrack ‘the beneficiaries appreciated the water distribution because most of the families can’t afford to fetch water for 20 shillings per day thus forcing them to use salty water for drinking and cooking. Some families would fetch water then they pay later on when they have money and this was a challenge since most of the residents depend on casual jobs thus taking too long to pay.”

    Beneficiary showing a code to the vendor. Photo: Julius Rasat

    He further mentioned that ‘’the system was transparent in that it enabled identified beneficiaries get a unique voucher code for water and so beneficiaries who were not targeted could not claim for water since one has to show his/her code before accessing the water.’’ He added “This system of issuing codes is unique and very transparent.”

    With the system being new to the vendor, there were some limitations that were experienced which were system related and also beneficiary related. He mentioned that ‘’as a vendor one needs to be patient when the system experiences delay in responding to successful redemptions’’. Sometimes the beneficiaries would receive the messages and delete them without knowing and hence claim that they have not seen messages on their phone and thus they come to the vendor to assist them in resending messages to get a voucher code.

    Apart from supporting the vulnerable community members, the system allows community-based structures and businesses to grow.

    Shadrack also recommended that ‘’if there is another chance, I would like to be considered as a vendor for the next project. He added ‘’We urge the donors to include more households since the issue of access to safe drinking water is a challenge to a lot of families”.

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