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Originally published by Nation Business
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business
March 1, 2026
20h ago

Net loss: How Kenya’s tax changes have shrunk workers’ incomes

Net loss: How Kenya’s tax changes have shrunk workers’ incomes

Deductions have risen, thanks to enhanced contributions to the NSSF and payments for Shif and Housing Levy...

✨ Key Highlights

Kenyan workers are experiencing a significant reduction in their take-home pay due to new tax policies and increased statutory deductions implemented by the Kenya Kwanza administration.

  • The average worker's monthly deductions have risen from Sh16,831 in 2022 to Sh21,289.70 today, impacting net income across all salary levels.
  • Key deductions contributing to this decrease include the National Social Security Fund (NSSF), the Social Health Insurance Fund (SHIF), and the Housing Levy.
  • Despite these deductions being tax-deductible, the resulting decrease in Pay As You Earn (PAYE) is insufficient to offset the financial impact, leading to a net loss in income for formal sector employees.

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