OVERVIEW OF ST. KITTS AND NEVIS
by CHARLES WILKIN - 28th February 2026

ECONOMY – sugar was the dominant industry until 2005 when it was closed because of huge losses from adverse world market conditions. Tourism became the primary industry followed by the offshore education sector comprising foreign owned universities in medicine and veterinary medicine. There is a small light manufacturing sector in St. Kitts. That industry was much larger around the time of independence and thereafter but has declined considerably over the years because of uncompetitively high wage levels. Nevis provides offshore financial services some of which are highly suspicious. 

 

Cruise tourism has expanded exponentially since the construction in the 1990s of Port Zante by the Matalon family out of Jamaica. Additional docking facilities were added around 2020 allowing the port to host up to 4 large cruise ships at a time. This bodes well for the future of this sector which has great potential.

 

The Four Seasons, Marriott Resort, Royal St. Kitts and Park Hyatt hotels (together with smaller villa and condominium developments and plantation hotels) have boosted the hotel sector and brought increased airline service. Kittitian Hill is a hillside hotel which can become a unique spa and nature resort and diversify the sector if a suitable investor can be found to maximise its potential. There is likewise potential for growth in the small plantation hotels in Nevis. Further expansion of the hotel sector is badly needed to increase the number of stayover visitors which is modest and way below the numbers of visitors attracted by several competing Caribbean islands.  

 

Tourism is heavily reliant on the quality of service provided to visitors across the industry. The quality of such service and productivity in the country can best be described as variable. Improvement of that service is essential for further growth of the industry.

 

The offshore education sector is a key contributor to the economy. It began with Ross Veterinary University around the time of independence. It has contributed significantly to the economy over the years. The country should continue to nurture and support that crucial economic activity to the best extent possible. We should not take it for granted. 

 

Testing of the geothermal resource in Nevis is being seriously pursued at long last. This resource will hopefully become the main economic driver with a substantial reduction in local energy costs and the generation of export revenue. 

 

CITIZENSHIP BY INVESTMENT (CBI)- given the moderate economic growth of the country this programme (authorized by legislation in 1984) has helped considerably to keep the country afloat but there has been over reliance on it as a substitute for genuine economic growth. Such passport sales have been described by politicians, with their perennial short-term perspective, as an industry, but the IMF correctly describes it as a windfall. There has been substantial over reliance on this windfall over the years particularly between 2008 and 2022. The revenue from the windfall has reached as high as 57 per cent of Government revenue in a single year.  Between 2008 and 2022 it totaled EC$5.678 billion. Additional revenue to the Government controlled entity known as SIDF and monies extorted by external players have not been disclosed but likely took the revenue over EC$10 billion in total for the period. 

 

Had those revenues been used effectively to build the country’s infrastructure and to  promote genuine economic activity the country would already be a Sustainable Island State as is the pledge of the current Government to make it by 2040. Instead much of the revenues have been divested, stripped or wasted. Advice from financial experts and examples locally and across the world to create a Sovereign Wealth Fund to save and invest a portion of the monies was ignored by successive governments. Instead they saw and used CBI as a political tool. 

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Despite the billions earned from the CBI, health care facilities remain poor, mental health facilities virtually non-existent, the water and electricity infrastructure were not properly maintained, the airport facilities are inadequate, many school and other government buildings are decrepit and security facilities are grossly inadequate. The potential for exploitation of geothermal energy to the enormous benefit of the country was known 20 years ago but ignored.

 

CBI has been substantially abused and corrupted to the great disrepute of the country.  It is the biggest stain on the country’s post-independence history. There have been highly publicized cases of the country’s passport holders arrested across the world on massive fraud schemes some including using false names to apply for the citizenship. There have been citizens by investment parading around the world with diplomatic passports. Some of the CBI management and “consultants” have been highly suspicious. Passports have been sold at prices way below the prices permitted by law. A Chinese owned company was engaged to do security checks on Chinese applicants entirely contrary to the law. China became a big market even though Chinese citizens are not allowed to have second passports. The Chinese disappeared as soon as the programme was put under greater control and regularized from its free for all status.

 

Politicians do not like to hear CBI referred to as the sale of passports but that is what it is. That is also how it has been seen externally by those exploiting it. The vast majority of these passport purchasers want the passport only because it provides easy access to many countries across the world. 

 

Tourism related projects notably The Park Hyatt and Kittitian Hill have been authorized and built successfully with CBI investment but significant others have been only partly built and abandoned as Chinese eyesores. 

 

There has been a lack of transparency and accountability from Government on CBI and the people have been largely silent and subservient to the politicians. The politicians have failed to account to them fully on the passports issued (regular and diplomatic), the monies derived and spent and the arrangements made with external players many unknown.  

 

Since 2023 some but not complete disclosure has been made. CBI has been substantially regularized and strengthened. Hopefully under its new structure it will proceed above board. Unfortunately the programme is drying up coincidental with its tightened regulation.

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The improvements to CBI operations include increased co-operation between the regional countries offering CBI programmes, the establishment of a regional regulator, enhanced security and due diligence, improved transparency and accountability in the operation of the government CBI related systems, introduction of stronger compliance and enforcement measures and significant engagement with international partners.

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The CBI programme has been a perfect example of the saying “easy come, easy go”.

 

The question is has the country learned the lessons CBI should have taught us. We will see.

 

SOVEREIGN WEALTH FUND – some progressive countries establish a Sovereign Wealth Fund in which they save some of their revenue and invest it for the future benefit of the country. This country is planning to introduce an SWF, 18 years too late. Had a Fund been established in 2008 when the revenues began to pour in and had the country saved 25 per cent of the CBI revenues the country would have reserves of over 2 billion dollars plus interest and profits. Instead much of the revenue was wasted and misspent and, as I have indicated previously, not even used to produce essential infrastructure. That is a disgrace and those responsible should have been held to account. 

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A perfect example of a country which benefited substantially from a SWF is the small country of Norway with a population of 5.6 million people. Norway was poor when in 1969 oil was discovered within its boundaries. Norway invested its oil revenues wisely and now boasts one of the world’s highest per capita incomes. Its Fund holds roughly 1.5 per cent of all listed global stocks in 9,000 companies across the world. It is the largest such fund in the world. 

 

Singapore is an even more impressive example because it has no natural resources and did not create an easy come easy go windfall. That country is the size of St. Lucia and has a population of 4.2 million residents. It was thrown out of Malaysia in 1965 and was then a poor backwater. Through wise and corruption free Government, the development of world class infrastructure, fiscal discipline, efficient and targeted public spending, a creative free enterprise system, strong social discipline, a top-class public service and an outstanding education system producing a highly skilled workforce, Singapore is among the wealthiest countries in the world in terms of GDP. Its SWF has an estimated $1 trillion dollars in assets. It is also a perfect example for the pursuit by our country of a sustainable economy.

 

DEMOCRACY - the country is a democracy by international standards.  The country’s democracy is however vulnerable for reasons listed above and discussed extensively in my new book and in my prior book published in 2015 by the name of Breaking The Cycle. I summarize the essential ingredients of democracy - the rule of law, free and fair elections, the separation of powers, free speech and fundamental rights, accountability of government, respect for democracy, active participation by the people and citizen security.

 

RULE OF LAW - fundamental elements of the rule of law are established in the constitution and have survived but not without some serious threats from men who favour the rule of man and have tried to use the political tribalism to their benefit. They did not succeed but the very substantial powers of the Prime Minister described below will continue to attract potential autocrats. Fortunately, the independence of the judiciary from political interference provides real protection. Ultimately it is the responsibility of the people to preserve the rule of law.

 

ELECTIONS - as discussed in the chapter of my book on FREE AND FAIR ELECTIONS elections here are free but are substantially lacking in fairness mainly because the constituency system has not been updated in close to 40 years, there is no campaign finance regulation or disclosure and because the systems of oversight, regulation and control are weak and require substantial strengthening. 

 

THE RIGHT TO VOTE - is given to resident citizens. It is also given to non-resident citizens (except the non-resident passport purchasers). Qualified non-resident citizens (called overseas voters) can return home to register and to vote. The right to vote is also given to citizens of Commonwealth countries who meet the residential qualification. Citizens by investment are not allowed to vote unless resident in the country.

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The system has been abused by political parties chartering planes and paying the costs to bring home overseas voters to vote from the USA, Canada, other Caribbean countries and as far away as the UK and Taiwan. Success in elections is very dependent therefore on money. This is a contentious issue which is discussed in my book. One politician complained that his party lost an election because one of his several chartered planes arrived too late from the USA for his non-resident supporters to vote. He gave the exact number of voters he had on the plane to vote in a constituency in which the margin of victory was four votes.

 

TERM LIMITS - there are no term limits although the subject is from time to time superficially discussed. They are badly needed to strengthen the democracy. 

 

CAMPAIGN FINANCE REGULATION - the biggest weakness in the electoral system is the complete lack of campaign finance regulation. That plus the overseas vote leave the country vulnerable to elections being bought without identifying who are the buyers. There is extensive discussion on this vexing subject in the chapter on Free and Fair Elections. A significant quote from an independent Government established Parliamentarian Salaries Review Committee recommended campaign finance legislation and made the point forlornly in these words: 

 

“Our history demands not only that our leaders not be bought or sold, but that we proudly proclaim that this is virtually impossible and that any attempts to do so would be subject to criminal sanctions imposed by law.” 

 

SEPARATION OF POWERS - the separation of powers between three independent  branches of Government namely the executive, the legislature and the judiciary does not fully apply partly because of the size of the country and in large measure because of the powers of the Prime Minister. These powers limit the effectiveness of the legislature as a check on the executive. Again, fortunately the judiciary has provided a vital check.

 

FUNDAMENTAL RIGHTS - substantial fundamental rights are entrenched in the constitution including free speech which is alive. It will hopefully grow effectively with maturity in the use of social media and other technology and with the increase of responsible public discussion on crucial issues not just those covered by political party agendas. The right to free and independent courts is also a critical right.

 

ACCOUNTABILTY OF GOVERNMENT - this is another very weak ingredient of the country’s democracy as described in detail in my book and recognized across the world. Such noticeable weaknesses include lack of parliamentary oversight. The Public Accounts Committee of Parliament gives the Opposition substantial constitutional powers to expose wrongdoing within the finances of Government. The Opposition can appoint an Opposition member as Chair of this Committee. This Committee has been totally ineffectual since the beginning of independence because successive oppositions have been interested only in opposing and not in holding Government to account in Parliament. For example in 2022 the Director of Audit reported that contrary to law Government expended 190 million EC dollars in excess of the statutory limit. There was an election in August 2022 which brought a change of Government so the year included Governments from both sides. Neither side bothered about the Director’s report and the response of the Ministry of Finance was nonchalant. 

 

This shows that laws and parliamentary powers (even those given to the Opposition) only matter if the people care about their money and hold their leaders to account. With the tribal politics and the handout mentality and the politicised Civil Service and the relative inactivity of Civil Society and the limited independent media this does not happen.  

 

Additional laws including Anti-corruption and Freedom of Information laws have been introduced in recent years. It will be seen if these become genuinely effective. That leaves the Court as the main check on the executive but the Court can only act if legal action is initiated. This does not happen as much as it should. There is much more such litigation in other independent Caribbean islands than in this country.

It is worthy of note that the Caribbean Court of Justice ruled several years ago that individual members of Government can be sued in Civil Court for damages for corruption, conflict of interest and breach of duty. That simply confirms the law from time immemorial. It confirms that there is an option to political prosecution. Every Government since the start of independence has been strongly accused of corruption by the Opposition but when the Opposition gets into power it never seriously pursues such allegations. Loss of office is regarded as sufficient punishment. That emboldens some politicians for the wrong reasons. They keep their money.

 

RESPECT FOR DEMOCRACY - the tribal politics and other factors listed in the prior paragraph limit such respect. The country is fortunate to have survived the political crises which seriously threatened the country’s stability in 1993 and 2013-2015. Hopefully this respect will come with greater political maturity and with greater respect for the last commitment in the constitutional preamble to achieve national objectives with a unity of purpose. 

 

ACTIVE PUBLIC PARTICIPATION - Participation by the electorate should not be limited as it presently is to voting in elections. In addition significant issues of public importance should be put to referenda. The only referendum held in the country was the referendum for secession by Nevis held in 1997. That was as provided by the Constitution limited to voters in Nevis. It almost succeeded with a vote in favour of 61 per cent just short of the 66 per cent required. Optimists with knowledge of history will recall that an informal referendum conducted by the Nevis Opposition in 1973 brought a vote of 99 per cent in favour of secession.

 

CITIZEN SECURITY - The country is relatively secure and peaceful but a culture of gang violence grew from the turn of the century with far too much violence between young men. The ease of importation of firearms across the porous sea boundaries added to that problem. So has a plethora of social and cultural factors including negative attitudes and poor parenting. A long term reversal of this trend is essential for the creation of a sustainable nation and for preservation of this essential ingredient of democracy. 

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In the past three years very substantial reforms have been made to the criminal justice system including measures to improve court backlogs through judge-alone trials and plea negotiations. Significantly harsher penalties have been imposed for possession of firearms, gang and violent offences. Robust laws have been created to combat migrant smuggling, financial crimes and interference with the justice system. These changes have been accompanied by significant institutional capacity building and leveraging of international connections. The country has also emerged as a regional leader in digital justice. The result has been a substantial drop in the murder rate from October 2024 and in other violent offences which hopefully will be sustained.

 

HEAD OF STATE - The Head of State is the Monarch of England represented by a Governor General appointed by the Monarch. The Monarch in fact plays no other significant role but the Governor General has some important powers including the power to appoint the Prime Minister. The Monarch consults with the Prime Minister on appointment of the Governor General. The unfortunate practice arose from the outset of independence that when a government changes the Governor General resigns or is replaced. That has inhibited the intended role of the Governor General as an independent statesman or woman. There clearly is a need to move beyond the British monarchy to a Republic. That is covered in my recommendations for changes to the constitution.

 

FEDERAL LEGISLATURE - called the National Assembly it comprises Representatives elected by voters on both islands under a constituency system. There are also nominated members appointed by the Government and the Opposition. Nevis has a guaranteed minimum number of Representatives in the National Assembly regardless of population. Nevis elected Representatives can therefore vote on what laws apply in St. Kitts but St. Kitts elected Representatives have no say in laws passed in Nevis by the NIA. The federal system was cynically described by a constitutional expert as Nevis being federated with St. Kitts and Nevis.

 

FEDERAL EXECUTIVE BRANCH OF GOVERNMENT - the executive branch of Government comprises a Prime Minister and a Cabinet of Ministers. The Prime Minister is appointed by the Governor General from among the elected Representatives. The Governor General appoints the Representative who in the opinion of the Governor General is likely to command the support of the majority of the Representatives. 

 

PRIME MINISTERIAL POWERS - the Prime Minister has huge executive control with limited checks and balances and inadequate accountability.  Sir Fred Phillips, to whom I referred previously, wrote this:

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“We must never forget that in small communities such as Caribbean States, it is easy for the Prime Minister wielding an all pervasive influence, to manipulate almost everything and everybody, especially since, in most territories, he (or she) is the appointing authority in respect of almost every person on every board operating in the public domain.”  

 

I endorse that categorization entirely. Here is a summary of the powers given to the office of Prime Minister. The Prime Minister in effect appoints the Governor General. He appoints the Cabinet from among members of the National Assembly. He can remove members of Cabinet. He controls the appointment of Government Senators. He controls the appointment of the Speaker of the National Assembly. He controls the major appointments within the Civil Service and to public and statutory boards. 

 

Through his foregoing powers the Prime Minister can exercise inordinate influence over the change of electoral boundaries and the conduct of elections. He decides the date of elections. He can dissolve the National Assembly at any time and trigger elections. This latter power exists even if the Prime Minister loses support of a majority in the National Assembly or a majority within his Cabinet. The only realistic ways in which a Prime Minister who does not resign can lawfully be removed from office are through elections or a Motion of No Confidence in the National Assembly. The rules governing the Motion of No Confidence are inadequate. 

 

I will refer to three noteworthy examples of the removal of Prime Ministers:

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1.  The PAM and NRP coalition Government went into the November 1993 election holding a comfortable majority. They lost that majority leaving PAM with 4 seats, NRP with 1, Labour with 4 and CCM with 2. Labour sought to join CCM to create a majority. There was substantial tension within the country. The Prime Minister Simmonds requested to be sworn in by the Governor General as Prime Minister of a minority Government of 5 out of 11 seats held by PAM and NRP. The Governor General exercised his constitutional power to comply. Labour felt aggrieved that they had not been allowed sufficient time to merge with CCM and agitated their supporters to protest. This led to civil disorder and violence which severely disrupted the country. A State of Emergency was declared. Civil Society eventually intervened and brokered an agreement between all the parties known as the Four Seasons Accord. The Prime Minister agreed to hold an election by 15th November 1995. He did so in July 1995 and lost convincingly to Labour led by Denzil Douglas who won a majority and was sworn in as Prime Minister.

2. The Labour Party still led by Denzil Douglas had internal strife leading up to 2013 when the Deputy PM and the most senior Minister left the Government leaving it as a minority Government. A Motion of No Confidence was tabled in Parliament. Douglas got the Speaker to defer a vote on the Motion which would have succeeded if a vote was taken. Douglas used various political and other tactics to delay the Motion for 26 months until the next election was due. In the interim he tried to change the boundaries to suit his Party. The boundary changes were struck down by the Privy Council due to a simple legal error. Douglas was forced to hold the election under the old boundaries. He lost that election. I write extensively on that 26-month election in my prior book called Breaking The Cycle published in 2015.

3. Douglas was succeeded in 2015 by Timothy Harris who led the Unity coalition of three parties. These parties were PLP founded by Harris when Douglas threw him out of his Labour Government, PAM and CCM. Unity also won the next election in 2020 but then fell totally apart resulting in a Motion of No Confidence being filed against Harris. The Motion would have easily succeeded. Instead of Harris resigning he remained as Prime Minister as allowed and convened an election within 90 days. He then lost that election convincingly to Labour.

 

The second instance shows that a Prime Minister can in addition to his other huge powers obstruct his removal by contrived means. That is a potential danger which should be addressed legislatively. The Constitution should be changed to require the Parliament to vote on a Motion of No Confidence within two weeks of its filing with the Parliament. If the Motion succeeds the Prime Minister should be compelled to resign immediately. His current power to stay in office and convene an election should be removed. The powers of the Prime Minister are so great otherwise that he should not, based on our actual history, be allowed to play around in office and influence the electoral system which itself is deficient in many ways which I have discussed.

 

The first instance shows the value of Civil Society in our democracy and the need for its components to be active constantly and not only in times of crisis.

 

POLITICAL PARTIES - The constitution says nothing about political parties but they exist informally in usual manner of democracies. They dominate the politics of the country. As at December 2025 there were 3 such parties in St. Kitts and 2 separate ones in Nevis. Elected Representatives can vote as they wish in Parliament and can change parties between elections without resigning from the National Assembly. Coalitions between parties can occur. A very glaring fact of the short history of independence is that every government from 1983 to 2022 has fallen apart because of disputes and fragmentation within the governing party and in every case between the Prime Minister and the Deputy Prime Minister. Perhaps the country was fortunate that this happened.

 

THE JUDICIARY - the saving grace of the constitutional system is the independence of the judiciary. The country does not have a separate Court. A major benefit provided by the British in the Constitution was to insist on the country joining the Eastern Caribbean Supreme Court which is entrenched in the Constitution. The ECSC is likewise the court with jurisdiction over the independent Eastern Caribbean nations of Grenada, St. Lucia, St. Vincent and the Grenadines, Dominica, Antigua and the British colonies of Anguilla, Montserrat and the British Virgin Islands. As is described in the chapter of my book on the Judiciary if St. Kitts and Nevis had been left to establish its own Court rather than accept the regional one it would have long ago descended into an autocracy and chaos. 

 

Appeals go from the High Court of Justice to the Court of Appeal of the ECSC to the Privy Council in London.

The country contributes financially to the Caribbean Court of Justice (CCJ). The CCJ has two jurisdictions. It decides disputes over the Caricom Treaty and it is the final Court of Appeal for countries which specifically accept this jurisdiction. Despite paying its share for the CCJ this country has not accepted the CCJ as its final Court of Appeal although the Constitution allows such move without a referendum. As a local King’s Council said on the steps of the Court House in Basseterre “we prefer to go to the white people.” I do not share that view but many nationals do despite touting their independence.

 

CURRENCY - another saving grace is the decision made pre-independence and pursued after independence to share a common currency with other islands of the Eastern Caribbean. The currency is known as the Eastern Caribbean currency and is governed under a system established by treaty between the islands which includes the Eastern Caribbean Central Bank as the governing body. The Bank is based in St. Kitts and is a positive resource for all the islands involved. The currency is well managed and is fixed to the US dollar at US$1 to EC$2.70. The US dollar is widely used.

 

PUBLIC SERVICE - comprises the Civil Service (a system inherited from the British and never substantially changed) and statutory and Government owned corporations. Together they comprise half of the work force. There are some highly qualified and competent management and staff within this body. However, too many are political appointees and are incompetent and/or do little work. The competence and productivity of the public service is therefore variable. Improvements and changes to the structure and management of the Civil Service are essential if the country is to mature. In 2024 the legislature passed productivity legislation to address the weakness in productivity across the economy. Whether this legislation will have the intended effect is dependent very much on the change of the political culture. 

 

The role of Permanent Secretaries is indicative of this culture. The role of the Permanent Secretary was copied from the UK. The use of the word Permanent indicates that holders of that office are intended to survive changes of Government. Instead Permanent Secretaries have become political appointees. Most are moved from their Ministry when there is a change of Government. But because the Permanent Secretary has relatively strong employment protection the replaced ones cannot easily be fired or demoted. For the most part the ones inherited by the new Government still carry the name but are given nominal positions with full pay and benefits. The disproportionate number of Permanent Secretaries carry large unnecessary costs and show very graphically the dysfunctional nature of the Public Service system.

 

MEDIA - when the country became independent there was no independent media. The only radio and TV station was ZIZ a government service which carried basic news and the Government message. No coverage was given to the Opposition or to views contrary to those of the Government. The two main newspapers were longstanding political rag sheets. These were The Democrat (also known as the Demoscrap) the mouthpiece of PAM and The Labour Spokesman (also known as The Labour Jokesman) the mouthpiece of the Labour Party. 

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Independent media began around the mid 1990s with The Observer an independent newspaper based in Nevis. The independent radio station WinnFm followed around 2000. WinnFm has 50 shareholders with no-one owning more than ten per cent. Other radio stations and newspapers have appeared but most have a political bias.

 

Compliance with Court judgments requiring ZIZ to cover all views has been token. Social media now provides an opportunity for the exchange and publication of individual and group views but so much of it is erratic. DMM that is disinformation, misinformation and malinformation are rife. Freedom of Information legislation is relatively new. Hopefully its use will grow to facilitate the transmission of Government information which should help to avoid speculation.

 

But simple additional solutions like Government publishing voluntarily all its public policies has not happened. 

 

EDUCATION - Education is compulsory up to High School level and is free in public schools. Vocational training is available. There is a community college of further education. The University of The West Indies has an Open Campus in St. Kitts from which some subjects are taught up to degree level. Students can pursue degree level and professional education externally.  Many do not return because of better opportunities outside and because of the political culture which not surprisingly deters them.

 

CULTURE - The people are warm and welcoming to tourists and outsiders. The lifestyle is easygoing. We are a festive people and lovers of sport and music. But our people are strongly divided among themselves by politics to the detriment of the country. There is therefore no unity of purpose as pledged in the constitution.

 

SOCIAL SECURITY - all employed persons below age 62 and their employers contribute to a Social Security scheme which provides pensions from age 62 and death and sickness benefits. The IMF has warned of an urgent need for reform of the scheme which has begun to run deficits and will if not reformed deplete its reserves by 2040. This is partly because of increased life expectancy.

 

SEVERANCE FUND - there is a severance payment fund to which all employers contribute and which is used to pay severance payments to employees whose jobs are severed by business closures or other specified causes. 

 

GOVERNMENT SOCIAL PROGRAMMES AND SUBSIDIES - these take up a third or more of the Government budget which is unsustainable but the result of the handout political culture. Many people receive direct benefits and subsidies who do not need them. The IMF has advised on the need for improved efficiency and targeting of these programmes to persons genuinely in need.

 

PRIVATE SECTOR - the private sector plays an important role in the economy. The country has a proud record of locally owned public companies across the economy in banking, insurance, telecommunications, retail, services and beverage production. Such companies include  Carib Brewery, National Bank, TDC, Cable and Wireless St. Kitts Nevis, Bank of Nevis, S.L Horsford.  At January 2025 these public companies had in total approximately 11,000 shareholders mainly local. Some of these entities were established before independence. There is a small stock exchange on which shares can be traded but there are very few trades. 

 

There are also successful Credit and Savings Unions in which locals participate extensively. Started in Nevis in the early 1970s under the lead of Ingle Blackett, a public servant, there are currently 4 credit unions operating in the country owned by over 32,000 shareholders. By credo they invest heavily in community causes.

 

There are programmes such as Aspire created in 2024 to boost financial literacy and develop the savings culture among children and younger people. This programme includes a financial empowerment programme and the establishment of a comprehensive curriculum delivered through school and community organisations. Up to December 2025 more than 5,000 eligible young people had been enrolled into the programme. They are given EC$500 in a bank savings account and the same amount in investments in corporate shares which are managed for them up to the age of 18 years when the proceeds become available for their direct use.

 

TAX SYSTEM - The corporate tax rate is 25 per cent of net taxable profits but some businesses are exempt under legislation promoting tourism and manufacturing. Unincorporated businesses and professionals pay a quarterly tax on gross revenue (2 per cent of income above $6,000 per month as at 1st January 2026). 

 

Property taxes are levied annually at moderate rates based on the value of the property. Transfer tax on the transfer of property is high at mainly 10 per cent of the sale price or market value whichever is higher. Mortgages are taxed at one per cent of the loan. 

Landholding Licences required from Government for the purchase of real property by non citizens carry a tax of 10 per cent of the price or value of the property.

 

Individuals in employment pay payroll taxes at moderate levels based on their salaries or wages. Employers also contributes to such taxes. 

Value Added Tax (VAT) is paid on the sale of goods and services including hotel rates. Some essential foods and services are exempt. The highest rate is 17 per cent.

 

Withholding taxes at 15 per cent are deducted from monies remitted to external businesses or individuals on a wide range of revenue types including dividends, rents and professional fees. 

 

Customs duties (at relatively high rates) and VAT are payable on goods imported with some exemptions. There are no capital gains taxes on individuals or inheritance taxes or death duties. The country is therefore a tax haven for retirees.

 

CIVIL SOCIETY – Partly due to the intensity of the political tribalism Civil Society has not been consistently active but has become agitated and active in two memorable situations The first was in 1993 when a close election led to riots. Civil Society initiated the Four Seasons Accord involving all political parties and key Civil Society organizations which resolved the matter by agreement after a long day of negotiations at the Four Seasons Hotel in Nevis

 

The second situation is in train with Civil Society very strongly opposing the secretively enacted SSZ legislation in August 2025 which could lead to the creation of autonomous states within our two small islands. There have been very powerful representations by the Churches, the Chamber of Industry and Commerce, the Bar Association and several other Civil Society organizations. We will see if the government listens to Civil Society as the political parties did in 1994.

 

COMMUNITY PROGRAMMES - are extensively pursued by service clubs such as Rotary and Lions and through programmes sponsored by international bodies, local individuals and the local private sector. Noticeably lacking are contributions of this type by the Chinese owned businesses and many Indian and other foreign retailers who exploit the market but contribute little voluntarily in return. 

 

CARIBBEAN TREATIES - St. Kitts and Nevis are by treaty part of two major groups of Caribbean countries. The first is the Caribbean Community, including the broader Caribbean, Belize, Suriname and Guyana, established by the Caricom Treaty in 1973. The second is The Organization of Eastern Caribbean States, the OECS, established by the Treaty of Basseterre in 1981. 

 

The OECS is far more effective and beneficial to this country than Caricom including strong co-operation in their Eastern Caribbean currency, common policies, movement of people and meaningful co-operation in other areas.

 

Caricom was established to increase regional integration and trade, raise standards of living, increase competitiveness and co-ordinate foreign policy. Its performance is very aptly described in the classic calypso by Chalkdust 40 years ago called Sea Water and Sand. Chalkdust sang “ and they meeting regularly drawing up all kind of treaty and after they drink dey whisky the treaty dead already. At their Heads of Government Conference is mere shop talk and ignorance, lots of talk but no action ever commence.” He rightly lambasted them for not having a regional airline which has been talked about for 50 years and is still in the talk stage. Likewise they are still talking about common agricultural development to feed ourselves and a shipping line to move the produce around. The development of the healthcare systems of individual countries for mutual benefit is still a 50 year dream. Each country could develop one or more medical specialties and share them with the other countries whose people could move around on the regional airline carrier to benefit from the medical care.

 

A strong reflection of the ineptitude and dysfunction of Caricom is the attitude towards the Caribbean Court of Justice. That Court was wisely established in 2000 with the purpose of replacing the Privy Council as the final Court of Appeal.It is also the primary court for disputes under the Caricom Treaty. It is funded by contributions from the individual member countries. But most of the countries despite paying for the CCJ and despite boasting of their independence from the former colonial power have not in 25 years replaced the Privy Council with the CCJ. That includes Trinidad and Tobago which actually hosts the CCJ. 

 

Chalkdust’s calypso was and still is spot on and its veracity is borne out by the theme of the Caricom Heads of Government meeting held in St. Kitts on 24th February 2026.The theme is “Beyond Words. Action Today for a Thriving Sustainable CARICOM”.  Despite the promise shown in preparations for that conference the divisions within Caricom were very apparent during the conference which ended with little optimism of improvement. I strongly recommend that those who have not done so listen to Chalkdust’s classic calypso.