Nominated MP John Mbadi has posited that President William Ruto’s administration is hiking the taxation rates on Kenyans to fund their overspending.
According to Mbadi, President Ruto was very much privy to the fact that the country’s economy is in a dire state and still went ahead to appoint excess public servants into office.
Speaking on Citizen TV’s Daybreak show on Thursday, the legislator argued that President Ruto has doubled the number of public servants from those appointed during Uhuru Kenyatta’s reign, which is showing obvious ramifications for the taxpayers.
“What Ruto’s government wants to do is to take money from people’s pockets and give to the government to finance extravagance and I call it extravagance because who forced William Ruto with this state of economy to employ 50 CASs,” said Mbadi.
He added: “Uhuru Kenyatta had just about I think 23. PSs are now 51 and they were much less in Uhuru’s government.”
“We are seeing wastages at a time when they are the same ones who are talking loudly that our economy is in a bad state.”
The political firebrand further questioned the motive behind the high taxation being imposed on Kenyans, stating that he is targeting a certain cause.
“The question I would want to ask Ruto is who are you targeting because you seem to be hurting everybody. We would be happy if he would be hurting the rich and the poor are smiling,” he said.
“But Ruto is going for the rich, those who are earning a super salary of Ksh.500,000 and above, who we should motivate to create more local demand because global demand is shrinking.”
This comes amid a weeks-long uproar from Kenyans as the debate over the Finance Bill 2023 continues to gain momentum.
The Ruto-led administration has proposed a double VAT on petroleum products from the current 8% to 16% in a bid to raise revenue which was effected on Monday and will be in force up to June 14, 2023.
Another contentious issue is the plans to deduct 3% from civil servants’ salaries to cater for housing.
The proposal, according to President Ruto, aims at helping Kenyans acquire homes, but also create employment opportunities for Kenyan youth.
At the same time, Kenyans will, starting July, contribute 2.7% of their earnings to the National Health Insurance Fund (NHIF).
NSSF rates also rose from a monthly contribution of Ksh.200 to a 6 per cent contribution from every Kenyan and another six per cent to be matched by their employer.
For example, an employee in Tier I – earning Ksh.6,000 per month – should be deducted Ksh.360 per month, and their employer to pay a similar amount making it a total of Ksh.720.
An employee in tier II who is earning Ksh.18,000 and above per month becomes the upper limit of contributions, paying Ksh.1,080, their employer should match up a similar amount to give a total of Ksh.2,160.
