• According to Kenyans, the current deductions that an average citizen has to contend with every month after the Kenya Kwanza Administration came to office are disheartening.

Following the effectiveness of the Social Health Authority contributions at the end of October 2024, many Kenyans complain about over-taxation. In the transition from National Health Insurance Fund (NHIF) to Social Health Authority (SHA), the taxation rate is currently at 2.75% per annum. Previously, the NHIF contributions were between 500ksh and 1700kshs monthly.

Currently, a person earning a monthly salary of 20,000 is expected to pay a monthly contribution of 550kshs, while one earning 50000 pays 1375kshs. For those with monthly salaries of 70,000, 1925kshs is deducted while those who earn 100,000 pay 2750kshs. Monthly earnings of 150,000 contribute 4125 200000 kshs, contribute 5,500, while those earning 500,000 are expected to pay 13,750 kshs. Those earning salaries of 1,000,000ksh will pay monthly deductions of 27,500kshs.

According to Kenyans, the current deductions that an average citizen has to contend with every month after the Kenya Kwanza Administration came to office are disheartening. For instance, one with a grosspay of 50,000kshs is deducted a total of 10,877kshs, having a take home of only 39,092kshs. This is after NSSF contributions of 2,160 kshs, Housing Levy of 750kshs, SHA deductions of 1375kshs and Pay As You Earn(PAYE) of 6,622kshs.

A person earning more than 500,000kshs is subjected to a new tax band of 32.5% for the 300,000kshs past half a million. This has agitated many Kenyans, who have been complaining of high pay cuts.

Most of them have taken to social media to air their grievances concerning the same.

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@abuyamasta posted on X: Imagine 2 years ago you were earning 200k per month; now, due to tough economic times, the government has reduced your salary to 70k per month! This translates to a pay cut of 65%. Remember that in that 70k, they are also deducting 49% tax. I think we are not angry enough.

@magwaz3 posted: After increasing tax deductions on people’s payslips, he added himself salary to cushion himself and now he’s the highest payed president in the world in terms of GDP ratio. Despite that, he’s the most corrupt and poorly performing president.

The National Treasury is proposing further payslip relief from housing levy and Social Health Insurance Fund(SHIF) deductions, which have left many Kenyans to breach the employment law that demands they take home at least a third of their salaries. As Kenyans continue to expect more deductions from their wages, many are experiencing financial and mental distress unimaginable proportions slipped off from their payslips.