Former Deputy President Rigathi Gachagua has launched a fierce counter-offensive against President William Ruto’s administration, taking issue with the government’s recent tax policies and their impact on ordinary Kenyans. Speaking from his Wamunyoro residence in Nyeri County, Gachagua expressed deep concern over the increased tax deductions introduced by the Tax Amendment Act and Tax Procedures Act, which came into effect on December 27, 2024.
The most notable change in these new laws is the substantial increase in contributions to the National Social Security Fund (NSSF) for workers earning over Ksh.36,000. Under the revised structure, monthly deductions will double, rising from Ksh.2,160 to Ksh.4,320. This move has sparked outrage among workers, with Gachagua referring to the increased tax burden as detrimental to the average Kenyan’s income. He emphasized that the new policies are detrimental to the well-being of workers and expressed his commitment to “rescue the payslip” by addressing the concerns raised by employees across the country.
In a TikTok live video, Gachagua passionately declared, “We want to rescue the payslip because the payslip iliguzwa na iko shida mingi sana,” which roughly translates to, “The payslip has been burdened with many problems.” His goal, he said, was to restore dignity to the payslip, ensuring that workers could afford to meet their daily needs and live comfortably.
The new laws also make significant changes to the digital sector, with the digital service tax being replaced by a more stringent economic presence tax. This new tax will increase from 1.5% to 3% of a company’s turnover, placing additional pressure on businesses operating in the digital space. Furthermore, a 5% withholding tax on digital platforms is expected to reduce earnings for workers and entrepreneurs in the digital sector.
Gachagua has expressed his intention to engage in discussions with players in the digital space to find ways of mitigating the impact of these taxes. “For our young people, those who are talented and in the online space, we are going to have a conversation with our young people so that they can tell me what they think we can do and what we can put in place so that their lives may be better,” he explained. The ex-DP’s message was clear—he seeks to involve the youth in shaping policies that would not only improve their financial prospects but also enhance their opportunities to showcase their talents.
Gachagua’s remarks reflect growing discontent within certain sectors of Kenyan society, as many fear the increasing tax burden may stifle economic growth, particularly for workers and digital entrepreneurs. As the political landscape shifts, it is clear that the issue of taxation and its impact on ordinary Kenyans will continue to play a pivotal role in the country’s future debates.
