Kenya’s President William Ruto is actively courting American tech companies, offering a favorable business environment despite recent hikes in domestic business taxes.

President Ruto extended this invitation during a speech to prominent U.S. technology firms and investors in San Francisco last Friday. He emphasized the investment prospects within Kenya and praised his government’s “strategic priorities.”

Nevertheless, critics argue that the recently implemented and proposed taxes by his administration will elevate the cost of conducting business in Kenya, particularly within the technology sector.

In its initial budget for the year, Ruto’s administration increased the digital service tax to 3%, effectively doubling it. This move was aimed at foreign tech giants utilizing the internet for marketing and product sales. While the government anticipated substantial revenue in Kenyan shillings from this tax adjustment, skeptics expressed concerns that it might deter tech investors.

President Ruto reaffirmed Kenya’s aspiration to become “Africa’s premier business process outsourcing and creative economy hub,” citing factors like high internet penetration and a burgeoning workforce.

It’s worth noting that Kenya has faced previous accusations of lax labor regulations, permitting the exploitation of workers by tech companies, including Meta, which faced lawsuits from former employees over poor working conditions and allegations of low wages for content moderators.