No More Tax Hikes: Genuine Relief or Political Strategy?

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The NSSF Act of 2013 mandates a 6% salary contribution from both employees and employers, a policy designed to secure retirement benefits for Kenyan workers.

Opposition supporters hold posters that read 'Tumechoka' (Swahili for: We are tired) as they participate in a public rally against the high cost of living after the passing of the finance bill at the Kamukunji grounds in Nairobi, Kenya on July 7, 2023. (Photo by Luis Tato / AFP)

By Joy Jeelagat

The Cabinet Secretary for Treasury, John Mbadi, has assured Kenyans that there will be no further tax increases on their payslips, stating that the government has reached the limit on employment income taxation.

“We cannot overtax anymore. We have reached a point where there is no more space for taxation on employment income,” Mbadi declared during a press briefing.

He also dismissed claims that the government is mismanaging public funds, emphasizing that there is no excess money to misuse. 
Instead, he urged workers to prioritize saving for retirement through the National Social Security Fund (NSSF). 

The NSSF Act of 2013 mandates a 6% salary contribution from both employees and employers, a policy designed to secure retirement benefits for Kenyan workers.

In discussing the nation’s revenue allocation, Mbadi revealed that the shareable revenue for the 2024/2025 financial year stands at Ksh 418 billion—comprising Ksh 387 billion from the 2023/2024 allocation and an outstanding Ksh 30 billion. 

He projected that the shareable revenue for 2025/2026 would be Ksh 405 billion. These funds, raised nationally, are distributed between the national and county governments.

The Treasury CS further outlined the government’s economic recovery strategies, including financial sector reforms, the implementation of e-procurement, and job creation through investments in manufacturing and agriculture.However, reactions to Mbadi’s announcement have been mixed.

Some citizens view it as a strategic move ahead of the 2027 elections rather than a genuine relief.”This is just a cover-up,” said George, a salaried worker.

“The government created the problem—high taxation—only to later present itself as the savior.”On the other hand, Nelly, another employee, welcomed the decision, seeing it as a step toward easing the burden on ordinary Kenyans. “It’s encouraging to see the government finally considering the plight of the mwananchi,” she remarked.

With elections approaching, the promise of no tax hikes is being met with both skepticism and optimism. Whether it is a true relief or a political front remains to be seen.

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