Middle class must awaken to reality of expanding taxation

Treasury CS Njuguna Ndung'u. [Elvis Ogina, Standard]

For a change, it may soon be the turn of middle and upper classes to bang sufurias (pans). Through the National Treasury, the Kenya Kwanza administration have announced their intention to significantly increase taxes this week. It remains to be seen whether they awaken a docile and traditionally apolitical middle class.

The Draft Finance Bill (2023) is before the public. It plans to increase income tax from 30 to 35 per cent for all those earning Sh500,000 and above. Last Monday, the President Ruto also announced a new National Health Insurance Fund schedule. The new rates double premiums at the lower spectrum but for those earning monthly salaries above Sh500,000, the mandatory costs will multiple ten-fold.