Central Organization of Trade Unions (COTU) Secretary General, Francis Atwoli, has called on Members of Parliament to shelve any proposed bills that aim to increase tax deductions on workers.
At a funeral held in Kakamega County, Atwoli specifically urged Ikolomani MP Bernard Shinali to withdraw the unemployment insurance authority bill, which seeks to impose taxes on workers and enable suspended employees to receive their salaries.
Atwoli expressed deep concern over the heavy tax burden already borne by workers, arguing that further tax hikes would leave many informal workers with minimal take-home pay.
He emphasized the urgent need to relieve this financial strain on employees, stating, “I would like to appeal to Shinali to reconsider anything related to the employment levy because people’s paychecks are already being significantly reduced. There’s hardly anything left on our pay stubs.”
He further stressed that it’s crucial for Kenya to focus on economic viability before adding more financial burdens to its citizens.
Atwoli mentioned the “Kenya Kwanza” initiative, which aims to implement measures to stimulate economic growth, but cautioned against imposing additional taxes on Kenyans before these efforts can take effect.
Atwoli’s remarks come in the wake of the government’s recent VAT (Value Added Tax) increases introduced in the Finance Act of 2023, aimed at revitalizing the nation’s struggling economy.
One of the most contentious changes is the mandatory monthly contribution to the Housing Fund, set to begin on July 1, affecting Kenyans in the formal sector. Under this levy, both employees and employers are required to contribute at a rate of 1.5% each, totaling 3%.
In addition, the government increased taxes on petroleum products from 8% to 16%, impacting consumers. The importation of second-hand vehicles also faced higher taxes.
The media industry was not exempt from these changes. Advertisement fees for alcoholic beverages, betting, gaming, lotteries, and prize competitions on TV, print media, billboards, and radio stations are now subject to a 15% Excise Duty.
Furthermore, millions of Kenyans who use mobile money services will see increased costs due to the Excise Duty rate rising to 15%. These tax adjustments have raised concerns about the financial burden on ordinary citizens and workers, prompting calls for a reconsideration of such policies.
