Francis Atwoli has made a passionate plea to Members of Parliament, urging them to reject bills that propose further tax deductions on workers. Atwoli’s appeal was made during a somber occasion at a funeral in Kakamega County, where he specifically called upon Ikolomani MP Bernard Shinali to withdraw the Unemployment Insurance Authority Bill.
The Unemployment Insurance Authority Bill has been a topic of discussion, with its proponents and critics debating its potential impact on Kenya’s workforce. According to the drafted bill, employees who find themselves unemployed or their respective beneficiaries would be eligible to receive salaries. This would be made possible through the establishment of an Unemployment Insurance Fund, to which both employers and employees would contribute.
Ikolomani MP Bernard Shinali, a supporter of the bill, has argued that it aims to provide financial protection for the unemployed, shielding them from the adverse socio-economic consequences of joblessness.
However, Francis Atwoli expressed serious concerns about the proposed bill and its implications for Kenyan workers. He stressed that imposing additional taxes on employees would further erode their take-home pay, leaving them financially strained.
“I would want to plead with Shinali to abandon anything related to the employment levy because people’s payslips are being deducted heavily. We don’t have anything left on our payslips,” Atwoli emphasized during his speech.
Atwoli’s argument is grounded in the belief that Kenyan workers are already burdened with various deductions and levies, and further taxation could lead to financial hardship for many. He called for a more considerate approach, particularly at a time when the country is working to stimulate economic growth.
It’s worth noting that Kenya has witnessed significant changes in taxation in recent times. Since the enactment of President William Ruto’s Finance Act 2023, employees in the formal sector have been required to make a monthly contribution of 3 per cent to the Housing Fund, starting from July 1. This levy is split between the employee and the employer, with both parties contributing at a rate of 1.5 per cent each.
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