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Originally published by Nation Businessbusiness
March 1, 2026
20h ago
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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