TAXING FOR JUSTICE: HOW FISCAL POLICY SHAPES HUMAN RIGHTS

Aligning fiscal governance and human rights is not just a policy ambition but a structural necessity. All parties to the International Covenant on Economic, Social, and Cultural Rights (CESCR) are obliged to respect, protect, and fulfill the economic, social, and cultural rights of all persons within their jurisdiction. Article 2 of the International Covenant on Economic, Social, and Cultural Rights obligates state parties to generate “the maximum of available resources” to “achieve progressively the full realization” of human rights. (OHCHR)

 Under state law, Article 201 (Chapter 12: public finance) of the Kenyan constitution emphasizes that the management of public finances should be transparent, accountable, and involve active public participation (Kenyan Constitution 2010). Similarly, the tax justice and human rights nexus is also acknowledged within ongoing UN tax convention, which recognizes that revenue transparency, corporate tax behavior, and human rights outcomes are inseparable. Despite Kenya being actively involved in the UN tax convention and a party to the CESCR treaty, the government remains unwilling to improve and actualize tax justice domestically. Center for Economic and Social rights )

At the heart of the problem are international finance institutions that limit progressive realization and non-retrogression through debt traps. The system suffers from unfair burden-sharing, compliance gaps, cross-border profit shifting, and states’ over-reliance on regressive taxes like VAT. Taxation is the main source of public revenue, but governments continue to spend more than they earn, resulting in persistent fiscal deficits and increasing public debt. Unregulated borrowing and unscrupulous expenditure have real human rights consequences: as debt servicing absorbs an increasing proportion of the budget, less is available for essential services such as health, education, and social protection. The latest data (Kamau and Ng’eno) from media and government institutions, indeed, shows a steep rise in debt interest payments, taking away funds that could have been used to support the welfare of the citizens. (Kenya National Commission on Human Rights and OXFAM).

In the context of international tax law, this contradicts provisions of human rights and sustainable development articulated in international human rights law, particularly the International Covenant on Economic, Social, and Cultural Rights (CESCR). (UNESCO) The socio-economic rights are seriously undermined when the tax system limits the ability of the state to pay for basic services. In addition, as witnessed in many other countries around the world, Kenya’s fiscal policies have also been criticized for increasing inequality, as the economic decisions have had adverse effects on the low-income population. This reveals a failure to embed fiscal justice fully into governance, where taxation should serve as a way to redistribute wealth and reduce disparities.

A second critical gap relates to corporate tax practices and weak enforcement, which directly undermines transparency under the obligation to maximize available resources. The Global South primarily faces major challenges with illicit financial flows and tax avoidance and evasion by multinational corporations. Such practices undermine domestic revenue and erode the capacity of the state to meet its human rights obligations. Such corporate tax abuses “result in a reduction of resources available for essential social services” and worsen inequality, as noted in global fiscal justice assessments. Enforcement has improved somewhat, but there are still systemic problems such as regulatory loopholes and limited transparency. (Knchr, 2025).

These gaps are not only technical in nature but also reflect current and historical human rights concerns. The public protests against taxation measures, especially recent finance bills, indicate a breakdown of trust and participation, which are vital principles of fiscal justice and international human rights law. The inequitable distribution of tax revenues, in addition, has entrenched regional inequalities and marginalization in contravention of the constitutional provisions on equitable development. If these problems are not solved, there is no hope for the future. Just like Kenya, many economies, especially from the Global South, are at risk of spiraling, where more taxes without fairness and accountability will lead to social unrest, loss of legitimacy, and deepening inequality. Continued corporate tax avoidance will further constrict public resources, whereas growing debt will thrust the fiscal burden onto the future. This is a global issue affecting many countries, which requires collective advocacy that brings nations together for a just, fair, and inclusive global fiscal system.