Last month, President William Ruto brokered a truce between the workers’ union, NSSF, and the Federation of Kenya Employers (FKE) to withdraw court cases blocking the implementation of the NSSF Act 2013.
The NSSF Act 2013 sought to raise monthly contributions by employees from the current KSh 200 monthly to 6 percent of the employer’s gross income.
The Head of State further proposed a new taxing regime that will see all Kenyans aged 18 years and above pay taxes as the Kenya Kwanza government moves to ramp up revenue collection in its race to meet a KSh 6 trillion collection target by 2027.
“We intend to cut on borrowing but we must increase the revenue we collect to be able to undertake development,” Ruto stated in an interdenominational church service in Murang’a.
However, addressing the media on Thursday, November 3, Azimio la Umoja One Kenya Coalition Party presidential candidate Raila Odinga opposed President Ruto’s move to increase monthly deductions from Kenyans.
The ODM leader argued that increasing taxes and NSSF deductions were subjecting Kenyans to more pain at a time when the prices of basic food commodities have reached rooftops.
“We are particularly concerned about UDA’s plan to inflict more tax burdens on Kenyans and other pronouncements and promises made in recent days that are unrealistic
“Kenyans cannot afford and should not be asked to pay extra taxes for the UDA regime to realize their outlandish and unrealistic promises,” Raila said.
While asking the government not to use the current economic situation as a scapegoat to hike taxes saying Narc Kenya took over the reins of power when the economy was dilapidated but the government did not increase taxes.
“When Narc took power in 2003, the economy was worse, but we were able to put the country back on track including free primary education without raising taxes,” Raila said.