President William Ruto’s Mashujaa Day promises to reduce taxes and create more jobs next year are music to the ears of Kenyans. The cost of living is compounded by the high taxation that has left the majority of the people in a desperate situation.
Many will be hoping that the government will this time move beyond the pledges and seriously implement the proposals. Of course, some critics see this as part of the pitch for the President’s re-election bid in the General Election to be held on August 10 next year.
While politics is inevitable at this stage, these economic proposals could, if fully implemented, make a big difference as they are directly aimed at reducing the tax burden for the hardworking Kenyans whose earnings have been drastically reduced by the introduction of several levies and other statutory deductions.
Of course, there is widespread scepticism over the poor response to previous high cost of living concerns. The Ruto administration is now rolling out these measures ahead of next year’s elections. The President has promised tax relief, more jobs for young people and cheaper access to property and technology.
He has also promised to exempt workers earning Sh32,333 per month or less from the Pay As You Earn (PAYE) tax to boost net take-home pay for families to meet their essential needs. The National Internship Programme is being expanded to create 50,000 paid internship opportunities for young Kenyans from next January.
The government has proposed to scrap stamp duty on land and property transactions valued at Sh1 million or less to boost the affordable housing ownership programme. The removal of the 25 per cent import duty on mobile phones is expected to lower digital access costs.
The National Treasury will submit the statutory changes to Parliament for legislative review, where the implementation details and tax band structures will be determined. The government should demonstrate accountability rather than simply dismissing the public’s anxiety about its pledges and programmes.
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