The Lower Eastern Times Opening The Third Eye
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The World Bank is urging the Kenyan government to exempt employees earning less than Sh32,333 per month from contributing to the housing levy and the Social Health Insurance Fund (SHIF).
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The proposal aims to ease the financial pressure on low-income earners by increasing their disposable income.
According to the World Bank, these deductions have proven unpopular, even though President William Ruto has strongly supported them as part of his agenda to expand access to affordable housing and universal healthcare.
The levies have reduced workers’ net salaries and raised employer wage bills, as businesses have been required since June 2023 to match the 1.5 percent housing levy on workers’ salaries.
In light of growing public dissatisfaction over increased taxation, the World Bank suggests that lower-income earners should be excluded from these specific deductions.
