Most Kenyans are hardworking and extremely optimistic people by all standards. For the last 10 years, the tax burden has fallen on the shoulders of the few who pay taxes and support the 48 million population. The Government is the custodian of all the taxes paid, this custodian has been having challenges of managing the people’s money, and the adoption of the new constitution was the story that broke ‘Wanjikus’ back.
As a Country, it is obvious that we are over-represented at the Senate, Parliament and at the County Assemblies. We have numerous Governors, Senators, and Members of Parliament, Women representatives, MCAs CECs and many others. The recent Finance Bill 2018 signed on 21st Sep by His Excellency the president was another heavy burden to tax payers and employers. We foresee this happening:
1. Possible Loss of Jobs
Employers will need to contribute 50% of 55B that the Government plans to collect from January 2019. Employers need to think where this will come from, hence possible job cuts.
2. Challenges of who to qualify
The plan is to run a lottery to determine who is lucky to qualify. Most of those who deserve social housing do not have access to internet; neither are they contributors to the fund. Majority are still in the slums. Remember the aim of this levy was to reduce the growth of slum and informal houses. This goal will be missed like an arrow missing the target.
3. The fund may be subject to abuse like other preceding funds
From the word go, there was no public participation. This is a true red light. The true purpose of this levy is a ploy for the Government to raise taxes through the back door. Against this backdrop, we call upon the Government to rethink about this strategy. It might be a better approach to involve the stake holders.
George Wachiuri is an Entrepreneur, a Philanthropist, a Motivational Speaker and the CEO, Optiven Group. To get more details on how you can invest with Optiven Ltd. Kindly talk to us via