Mbadi appeases salaried Kenyans as shrinking payslips become 2027 battleground

Treasury Cabinet Secretary John Mbadi recently addressed concerns regarding taxation on payslips, assuring Kenyans that the government is committed to improving their financial situation. 

Speaking on February 3, 2025, Mbadi said that the government has implemented measures to enhance workers' payslips by making SHA and Affordable Housing Levy contributions tax deductible. 

Mbadi declared that there would be no further taxation on Kenyans' payslips, aiming to alleviate the financial burdens on employees.

This statement comes in response to public outcry over the government's previous tax policies that affected take-home pay.

 “We are not increasing VAT at all actually, the finance bill this year may not have any tax adjustment upward in terms of rates, we cannot overtax Kenyans anymore we have reached a limit where we are saying no more space for taxation on employment income,” Mbadi said.

He reiterated that if people’s income is reduced, it also has a significant impact on the economy due to reduced demand and production of goods. 

The shrinking payslips have become a political battleground, with various factions vying for the support of payslip holders ahead of the 2027 elections.

Millions of salaried Kenyans are feeling the pinch as up to 45% of their earnings are deducted before they even receive their paycheck, leading to a daily struggle for survival 

Former Deputy President Rigathi Gachagua has now launched a bid to restore the “dignity of the payslip, appealing to the over 3 million salaried Kenyans in his bid to oust President William Ruto.

In his recent criticism of the government, Gachagua has said that the next government should abolish some of the taxes introduced by the Ruto administration 

He has accused trade union leader Francis Atwoli of prioritising praise for President Ruto over advocating for workers’ rights, particularly regarding deductions on their payslips. 

The Federation of Kenya Employers (FKE) said that after deductions, many employees remain with far less than they need to cover their basic expenses. 

This situation has led to disillusionment among workers, who feel they are working for the government but not receiving anything in return.