Sharp Daily
No Result
View All Result
Sunday, December 7, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Civil servants cry foul over PAYE deductions

Brenda Murungi by Brenda Murungi
December 28, 2023
in News
Reading Time: 2 mins read

The Union of Civil Service (UKCS) secretary general, Tom Odege, wants the government to reduce taxes imposed on salaried workers. With the doubling of the tax on petroleum products from 8 to 16 percent early this year, employees have been on the receiving end of heightened taxation and a significant decrease in their net pay.

While addressing the press in Kisumu, Odege appealed to the state to review the PAYE deductions as government employees protested that the 30 percent tax increase in Pay as You Earn (PAYE) has overstrained them.

The deductions range from the introduction of the housing levy to the new PAYE rate, the National Social Security Fund (NSSF), and the National Health Insurance Fund (NHIF).

In February this year, deductions to the National Social Security Fund (NSSF) rose fivefold after a landmark ruling upholding the 2013 NSSF Act, which saw pension contributions raised to 12 percent of pensionable wages.

RELATEDPOSTS

Inside Kenya’s 2025 maandamano

November 21, 2025

Restructure housing levy to solve Kenya’s housing crisis

May 23, 2025

The passage of the 2023 Finance Act also saw two notable changes affecting salaried employees, including the introduction of the housing levy, set at 1.5 percent of gross salaries and payable by both the employee and the employer.

The introduction of the housing levy has received the greatest pushback from workers, who have faulted the model of implementing the affordable housing program via taxation and levies.

“We particularly want the housing levy removed because we deem it unnecessary. It’s hurting workers,” Odege stated.

The act also introduced two new higher Pay-As-You-Earn (PAYE) bands, covering incomes of between KES 500,000 and KES 800,000 at 32.5 percent and income exceeding KES 800,000 at 35 percent.

His plea comes at a time when the taxman targets collections from income tax, mainly PAYE and corporate income tax paid by traders, to increase by KES194.2 billion to KES1.2 trillion in the next two financial years.

The Union of Civil Servants also observed that President Ruto campaigned on a platform of reducing the cost of living, but instead they have received blow after blow with high taxes and increased costs of living.

 

 

 

 

Previous Post

Schools in North Rift region to re-open in January 2024, Kindiki says

Next Post

Five Uhuru Highway roundabouts closed for maintenance

Brenda Murungi

Brenda Murungi

Related Posts

News

Buy-Now-Pay-Later Craze: Convenience or Debt Trap?

December 6, 2025
News

The Rise of Agency Banking in Kenya

December 6, 2025
News

The Future of Saccos: Digital Transformation and Competitive Pressures

December 6, 2025
Analysis

Vodafone Safaricom acquisition: KES 204 billion deal sparks national sovereignty debate in Kenya

December 5, 2025
News

The importance of credit scores and how banks use them

December 5, 2025
News

Catalysts for Capital: The Strategic Role of Development Finance Institutions in Kenya

December 5, 2025

LATEST STORIES

Buy-Now-Pay-Later Craze: Convenience or Debt Trap?

December 6, 2025

The Rise of Agency Banking in Kenya

December 6, 2025

The Future of Saccos: Digital Transformation and Competitive Pressures

December 6, 2025

Vodafone Safaricom acquisition: KES 204 billion deal sparks national sovereignty debate in Kenya

December 5, 2025

Policy Reforms Needed to Curb Abuse of Customer Data in Kenya

December 5, 2025

The importance of credit scores and how banks use them

December 5, 2025
The up arrow shows the inflation rate. Interest rates increase, home loan, mortgage, house tax. investment and asset management concept. percentage for increasing interest rates with stacks coins

The Real Estate Fallacy

December 5, 2025

Catalysts for Capital: The Strategic Role of Development Finance Institutions in Kenya

December 5, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024