Unemployment Insurance Bill 2022: Kenyans Protest Another Proposal to Deduct Levy from Payslips

 

The bill proposes employees contribute 1% of their pay, matched by 1% by the employer towards the fund. Shinali also proposed the establishment of the Unemployment Insurance Authority with a board comprising of a chairperson and nine members.  The authority will administer the fund and advise the respective Cabinet Secretary (CS) on unemployment insurance policies and legislation. "The objective of the legislative proposal is to provide for the payment of unemployment benefits to employees who become unemployed," part of the bill suggests. Why Mosop MP Abraham Kirwa supports bill Speaking to TUKO.co.ke, Mosop MP Abraham Kirwa expressed his support for the bill. He argued it would cushion employees, explaining that is an insurance policy for employees, with contributions made by both the employer and the worker. "I support this bill in its totality. This will help several employees who may become unemployed due to different circumstances. This insurance is a true cushion for employees. Several developed countries have this benefit for all their employees," Kirwa said in an exclusive interview with TUKO.co.ke. Why Kenyans protested against Unemployment Insurance Bill Kenyans on social media expressed their disapproval of the bill, with some hilariously saying they had lost count of the number of levies imposed by the government. TUKO.co.ke sampled some comments: Mihr Thakar posed: "After all this, what will be left?" Kevlar lamented: "Our salaries are like an eternal bank account, just waiting to be tapped into whenever the government needs it for their latest recipe." @Xp20012 warned: "Another tax? Enough is enough. We will organise an armed rebellion and disband this country." @Alwafu opined: "It's a crime to own a company or create employment in this country." Aduma Mutiva said: "Formal employment is becoming a trap now. I'm very worried these countless funds and taxes will stifle business growth. They are a big scare." Liz Gitonga: "We will be left without salaries at this rate." @Jakama_snr: "Having a payslip in Kenya is a crime." @rkirubi added: "I’ve lost count now. Can you list all the new taxes, levies, and funds please?" What is Finance Act 2023? Kenyans are struggling to pay taxes introduced under the Finance Act 2023, which seeks to raise an additional KSh 211 billion in tax revenue. All employees remit 1.5% of their gross salary to the Housing Fund, as employers match the same. The act also doubled Value Added Tax (VAT) on fuel, leading to a revision of prices upwards.   BY TUKO NEWS