(Photo courtesy)
President William Ruto has defended his administration's tax policies amid criticism from the opposition over deductions from workers' salaries.
Speaking about the issue, Ruto dismissed claims that his government was taking money from Kenyans through taxes, saying he wanted to protect workers' payslips.
"Nataka kumalizana na wale watu wanasema mambo ya payslip wawache kunipigia makelele," Ruto said.
The President went ahead to explain how the proposed changes to the Pay As You Earn (PAYE) tax system would benefit workers, using a teacher earning KSh 50,000 per month as an example.
According to Ruto, a worker earning that amount currently pays a housing levy of KSh 750, which represents 1.5 per cent of the salary.
He explained that his administration was proposing to remove PAYE from the first KSh 32,000 of workers' monthly earnings through changes that had been presented to Parliament.
Using the teacher's salary, Ruto said the remaining KSh 8,000 would attract PAYE at 25 per cent, amounting to KSh 2,000.
He argued that removing PAYE from the first KSh 32,000 would mean the teacher would no longer pay the KSh 2,000, while continuing to pay the KSh 750 housing levy.
"You are paying a housing levy of KSh 750, and you are not going to pay KSh 2,000 PAYE from your salary. The difference is KSh 1,250," he explained.
Ruto attributed the proposed tax relief to improvements in the economy and stability of the exchange rate.
"I have stabilised the economy, and the exchange rate is stable, so I can now reduce taxes on some of your earnings," he said.
The President's remarks come amid growing public debate over taxation and the impact of government deductions on workers' monthly take-home pay.
https://x.com/Tuko_co_ke/status/2120856343259099239?a=PHUEhPgLHVg2R5w5YDA&s=19
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