Increased payroll taxes are one element of a desperate bid in Kenya to keep the government running and pay off the country’s foreign creditors.According to The New York Times, the recent pay stubs in Kenya reveal a concerning trend. Significant deductions have been made to cover the costs of the country’s new funds for affordable housing and health insurance. Additionally, there has been an increase in contributions to the National Social Security Fund and a rise in the tax rate. As a result, employees with a monthly salary of 45,000 shillings, equivalent to $350, have seen a 9% decrease in their take-home pay, leaving them with only $262.
The impact of these changes has been felt by many, including employees at Shining Hope for Communities, a nonprofit organization in Kenya. Kennedy Odede, the founder of a self-help association in Nairobi’s Kibera slum, stated that “people who are salaried are crying” due to the decrease in their pay.
These increased payroll taxes are part of President William Ruto’s efforts to generate more revenue to support the government and pay off Kenya’s growing foreign debt. However, this has caused distress among many Kenyans who are struggling to make ends meet. The situation has become so dire that some are unable to access the article content without enabling JavaScript in their browser settings.
If you are currently in Reader mode, please exit and log into your Times account, or consider subscribing to access all of The Times’ content. For those who are already subscribers, thank you for your patience while we verify your access. And for those who want to access all of The Times, consider subscribing today.
Source:Read More