Kenya taxation. Learning from Denmark.
According to Wikipedia, Kenya is among few Countries in the world in current discussions to introduce Land Value taxation.
The Uhuru Kenyatta Government, if it successfully introduces this taxation system, will be acknowledged for generations to come for helping resolve Kenyan poverty.
Denmark tax regime.
In Denmark, in 1957, a small Georgist party that advocated for Land Value taxation won a few seats and power sharing within the ruling coalition.
One year later, inflation fell from 5 to 1% as investors stopped hoarding on land.
Bank interest rates fell by 1.5%.
Unemployment was drastically reduced.
Denmark vs Kenya economy comparison.
Denmark has a population of 5.6 m compared to Kenya’s 40m.
Only 13.6% of Danes live below poverty line compared to Kenya’s 50%.
Denmark’s GDP is 10 times larger than Kenya’s, at 336 B USD vs Kenya’s 33 B USD.
Denmark’s economy mostly relies on its human resource to enable this huge GDP.It has very few mineral resources.
Similarly, Kenya’s economy also relies on its human resource to enable its GDP and also has few natural resources.
In Denmark, use of Land Value taxation has helped its human resource to access the most important factor of production, Land.
In Kenya, poor land laws have locked out this all important factor of production, Land, from the human resource.
By the Uhuru Government supporting and implementing such a taxation system as seen in Denmark, Kenya will easily move forward in terms of productivity and within a few years, get to the level of Denmark.
Scientists have proven that all humanity generally have the same IQ, therefore, whatever the Danes can achieve using their human resources, Kenya can also,. All Kenya needs to do is learn from the best, tweak a little bit here and there and all will be well. There is no need to reinvent the wheel all over again.
Francis Gichuhi Kamau, Architect.