Half Salary Taken as Taxes, Claim Kenyan Workers
Bahati shalom
Feb 5, 2025
Treasury Cabinet Secretary John Mbadi
Treasury Cabinet Secretary John Mbadi has addressed growing concerns from Kenyan workers and employers about claims that almost half of salaries are taken as taxes. The issue has sparked widespread debate, especially as the cost of living rises and new government levies are introduced.
Mbadi dismissed these concerns, calling them "misleading and exaggerated." He explained that Kenya’s tax system is fair and necessary for national development.
"It is inaccurate to say that half of a worker’s salary goes to taxes. While PAYE (Pay As You Earn), NHIF, NSSF, and other deductions exist, the overall tax burden varies depending on income brackets. We must also consider that these deductions contribute to essential public services," he stated.
Some employees claim that after various deductions, they are left with less than half of their earnings. Employers and financial experts argue that the rising tax burden, including the Housing Levy, increased PAYE rates for higher earners, and VAT on essential goods, has significantly reduced disposable income.
The Kenya Association of Manufacturers (KAM) and the Federation of Kenya Employers (FKE) have called on the government to reconsider its tax policies. They warn that excessive deductions could lead to lower consumer spending, job losses, and slower economic growth.
Meanwhile, ordinary citizens continue to express frustration, flooding social media with complaints under the trending hashtag #TaxedToDeath. Many argue that while taxes keep increasing, public services have not improved.
Mbadi hinted that the government might review tax policies in the future, but he urged Kenyans to be patient. The big question remains: Will the government provide relief, or will citizens have to prepare for even tougher financial times?
