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March 18, 2026
2h ago

Employers Demand Payslips Review as Kenyans Begin Ditching Employment

Employers Demand Payslips Review as Kenyans Begin Ditching Employment

Besides pay slip changes, employers are calling for the government to ensure improved access to finance and align education with industry needs..

✨ Key Highlights

The Federation of Kenya Employers (FKE) is demanding an immediate review of payslips and a reduction in statutory deductions and taxes, citing a 12 per cent drop in formal employment. High living costs and tax burdens are making formal jobs less attractive, pushing more Kenyans into informal work.

  • Formal employment has dropped by approximately 12 per cent, particularly in the manufacturing, retail, hospitality, transport, and financial services sectors.
  • The FKE, through its CEO, Jacqueline Mugo, is urging for tax reductions and policy stability.
  • This call comes as the government, through Treasury Cabinet Secretary John Mbadi, plans to introduce PAYE relief for Kenyans earning below Ksh30,000.

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