Former Deputy President Rigathi Gachagua has sharply criticized President William Ruto’s government, focusing on the new tax regulations that he claims will heavily impact ordinary Kenyans.
In a video shared from his residence in Wamunyoro, Nyeri County, Gachagua raised concerns about the increased tax deductions, particularly in relation to the Tax Amendment Act and Tax Procedures Act, which took effect on December 27, 2024.
A major change includes a significant hike in National Social Security Fund (NSSF) contributions for employees earning over Ksh. 36,000, from Ksh. 2,160 to Ksh. 4,320.
“The payslip has been severely impacted, and we are aiming to restore its dignity so that workers can manage their finances better,” Gachagua said in a live TikTok session.
The new tax policies will also affect the digital economy, with the digital service tax being replaced by the economic presence tax, increasing from 1.5% to 3% of turnover. Additionally, a 5% withholding tax on digital platforms is expected to cut into the earnings of digital industry professionals.
Gachagua revealed plans to engage with stakeholders in the digital sector, especially young people, to discuss ways of improving their financial circumstances. “Our youth, who are active online and talented, need to be able to earn a living and have their contributions recognized. My goal is to collaborate with them for better outcomes,” he emphasized.
