The recent pay stubs of many Kenyans reveal significant deductions attributed to new government initiatives aimed at funding affordable housing and health insurance, alongside increased contributions to the National Social Security Fund and rising tax rates. Individuals earning a monthly salary of 45,000 shillings (approximately $350) have experienced a 9 percent reduction in their take-home pay, now amounting to 262 dollars.
President William Ruto's administration has implemented these increased payroll taxes as part of a strategy to generate revenue necessary for government operations and to address Kenya's substantial foreign debt. This includes new excise taxes on various goods, a doubling of the tax on business profits, and increased government fees on services like money transfers and telecommunications.
The tax hikes, which have met with public discontent, have particularly affected low-income citizens in Kenya, where many live in poverty and face high youth unemployment rates. Approximately 83 percent of the labor force is engaged in informal employment, leaving a small segment of the population, primarily salaried workers, to shoulder the tax burden.
The economic crisis has also led to depreciation of the Kenyan shilling against the dollar, resulting in skyrocketing import costs. Basic commodities that used to cost 1,000 shillings ($7.73) now require more funds for purchase. This inflation in prices has sparked widespread frustration among citizens, many of whom recall last year’s riots in response to proposed tax increases, which resulted in significant violence and loss of life.
The Kenyan government is currently in discussions with the International Monetary Fund regarding a new loan package, which may necessitate further fiscal guarantees. However, public skepticism regarding the government’s capability to manage debt effectively remains high, exacerbated by ongoing reports of corruption and mismanagement.
Many citizens express disappointment in the lack of adequate public services, with prevailing sentiments reflecting a distrust in the government’s ability to deliver on promised improvements. With the upcoming budget discussions and potential for additional tax increases, there is growing concern among the public about possible unrest and dissatisfaction with government policies.
The situation is particularly dire in Kibera, one of Africa’s largest urban slums, where basic sanitation services are notably absent, and residents face daily challenges in accessing clean water and safe living conditions. Increasing taxation without corresponding improvements in public services has led to a sense of hopelessness among the populace.
As the country approaches the anniversary of last year’s unrest, there are indications that further protests could emerge, driven by the ongoing struggle for economic stability and accountability from the government. With many Kenyans continuing to work hard in hopes of a better future, the prevailing sentiment is one of anxiety and uncertainty regarding the road ahead.