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Public servants have warned that they will take to the streets after the government introduced new tax deductions on their payslips.
This followed the implementation of the Finance Act 2023 after the appellate court lifted stay orders on Friday, July 28.
Public Service and Gender Cabinet Secretary (CS) Aisha Jumwa confirmed delays in July 2023 salaries, citing logistical challenges in payroll migration.
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Government workers expected a pay rise after President William Ruto's directives to the Salaries and Remuneration Commission (SRC).
But SCR did not complete its review on time, a move that contributed to the delays in the salaries.
The workers also suffered further deductions following the implementation of revised rates under the NSSF Act of 2013.
The National Social Security Fund (NSSF) Act of 2013 proposed an increase in monthly contributions from KSh 400 to KSh 2,000.
Ruto's administration picked up the law in its proposals to increase the national savings basket.
Citizen TV reported that the National Police Service workers paid an extra KSh 360 in NSSF contribution besides the normal contribution of KSh 3,020 during the month under review.
Teachers also decried over-taxation of their monthly payslips, arguing that they pay 7.5% provident fund towards the retirement scheme and do not need the extra NSSF deductions.
“We demand an increase in our pay, and all the deductions must stop henceforth. If not, we shall hit the roads... we will fight for our rights,” cried out one teacher.
The implementation of the Finance Act 2023 means new deductions, including the 1.5% housing levy to civil servants' payslips.
Another tax that hit Kenyans is the introduction of the 16% Value Added Tax (VAT) on petroleum products, which saw a rise in pump prices.
Telecommunication service providers, including Safaricom, reviewed their data, fibre, call and Short Message Service (SMS) charges.
The giant telco company increased the M-Pesa business till tariff from 0.5% to 0.55%.
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Aisha Jumwa said delays in July salaries came as a result of logistical challenges.
Finance Act 2023: Civil Servants Threaten to Down Tools Following New Taxes, NSSF Deductions
The Finance Act, 2023