Kenyans are up in arms against high taxes imposed by President William Ruto’s administration. President William Ruto has introduced multiple taxes. Why Kenyans’ payslips have shrunk Following the introduction of a 2.75% Social Health Insurance Fund (SHIF) deduction on gross salary and a 1.5% housing levy, Kenyans’ disposable incomes have shrunk.
The enforcement of the statutory deductions has seen workers’ payslip cuts soar by up to 45%. Business Daily reported that employees earning between KSh 100,000 and KSh 1 million are now parting with between KSh 27,665 and KSh 351,282 in taxes from KSh 25,115 and KSh 310,482, respectively.
At least 3.3 million Kenyans in the formal sector are shouldering the burden since a majority of workers (16.7 million) are in the informal sector. With reduced incomes, household purchasing power has weakened amid harsh economic times.
“The enforcement of the housing levy and the SHIF alongside PAYE has placed an increased financial burden on employers and employees. Our members report that this has reduced disposable incomes for workers significantly dampening consumer spending,” Federation of Kenya Employers executive director Jacqueline Mugo lamented.
How payslips look after SHIF, other deductions (KSh) Monthly salary Previous deductions Previous net pay Current deductions Current net pay 50,000 9,802 40,198 10,727 39,273 100,000 25,155 74,885 27,665 72,335 200,000 54,890 145,110 61,690 138,310 350,000 99,552 250,448 112,727 237,273 500,000 144,215 355,785 163,765 336,235 800,000 240,986 559,014 273,286 526,714 1,000,000 310,482 689,518 351,282 648,718
Why church leaders want SHIF suspended Ruto’s flagship Social Health Insurance Fund (SHIF), which the Social Health Authority (SHA) is implementing, has received backlash from church leaders. The National Council of Churches of Kenya (NCCK) called on Kenyans to reject the implementation of SHA. NCCK chairman Elias Otieno Agola said Kenyans should not remain silent in demanding their rights.
Two months after its launch, the Social Health Authority (SHA), tasked with implementing the Social Health Insurance Fund (SHIF), continued to face hurdles, with many patients unable to access services.
by Japhet Ruto