MPs Seek To Review And End Tax Exemptions Granted to Moi and Kenyatta Families

Parliament faces mounting pressure to scrap controversial inheritance tax exemptions that have protected the estates of Kenya’s first two presidents for decades

Kenya’s National Assembly is facing renewed calls to abolish a contentious legal provision that shields the estates of former Presidents Jomo Kenyatta and Daniel arap Moi from inheritance taxes, following a petition that has reignited debate over equality and fair treatment under the law.

The controversy centers on Section 7(3) of the Estate Duty Act, which explicitly exempts the two founding fathers’ estates from inheritance tax obligations that apply to all other Kenyan citizens.

Public interest advocate John Wangai filed the petition challenging this provision, arguing it violates Article 27 of the Constitution, which guarantees equality before the law.

Under Kenya’s estate duty framework, inheritance tax is levied on all property that a deceased person was competent to dispose of at the time of death, including assets held for their use and benefits from life insurance policies.

However, the controversial clause carves out a specific exception stating: “This section shall not apply to His Excellency Mzee Jomo Kenyatta, nor His Excellency Daniel Toroitich arap Moi.”

Wangai contends that maintaining this exemption undermines national values and creates an unjust two-tier system that privileges political elites at the expense of ordinary citizens.

The petition gained additional significance following President William Ruto’s 2023 remarks criticizing tax evasion among certain individuals who use state instruments to protect their wealth.

“This country is not the animal farm where some are more equal than others. We are going to have a society where every citizen carries their fair share of our burden to raise taxes,” President Ruto declared, coincidentally on the same day the petition was submitted to Parliament.

The matter has now reached the National Assembly’s Petitions Committee, where lawmakers have expressed strong support for reviewing the provision to align it with constitutional principles and modern democratic standards.

Committee chair Janet Sitienei, the MP for Turbo, questioned whether the estate duty had been abolished through an Act in 1982, to which Wangai confirmed his awareness of the repeal while maintaining that the current law with its controversial exemption remains operational.

The parliamentary committee has indicated that this provision may be part of a broader collection of outdated laws that continue to benefit privileged individuals, raising questions about whether such exemptions serve any legitimate public interest in contemporary Kenya.

Members have pledged to examine the matter thoroughly and determine if the exemption should be scrapped entirely.

This development comes at a time when Kenya is grappling with revenue challenges and seeking to broaden its tax base.

Inheritance tax, also known as estate duty, is typically justified as a tool for promoting economic equity, unlocking idle assets, and generating public revenue for government operations.

The petition represents a significant test of Kenya’s commitment to constitutional equality and could set a precedent for reviewing other potentially discriminatory legal provisions that favor political elites.

As the committee deliberates, the outcome will likely influence public perception of fairness in Kenya’s tax system and the government’s commitment to treating all citizens equally under the law.

The review process is expected to continue in the coming weeks as MPs weigh the constitutional implications against the historical context that led to the original exemptions being granted to the estates of Kenya’s founding presidents.