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Gachagua’s mission to “Rescue the Payslip” amidst new tax policies

Rigathi Gachagua breaks his silence on Livestock vaccination program
Rigathi Gachagua breaks his silence on Livestock vaccination program

Nyeri County – Former Deputy President Rigathi Gachagua has launched a vigorous critique of President William Ruto’s administration, focusing on the government’s recent tax policies that he claims impose a heavy burden on ordinary Kenyans.

In a video broadcast from his Wamunyoro residence, Gachagua voiced his concerns regarding the increased tax deductions affecting workers, specifically referencing the Tax Amendment Act and the Tax Procedures Act that came into effect on December 27, 2024.

One of the most significant changes under the new legislation is the doubling of contributions to the National Social Security Fund (NSSF) for employees earning above Ksh.36,000, which will rise from Ksh.2,160 to Ksh.4,320. “We want to rescue the payslip because the payslip iliguzwa na iko shida mingi sana. (We want) to restore the dignity of the payslip so that the people are able to do their things,” Gachagua stated during a TikTok live session.

The new tax regulations also extend to the digital sector, where the digital service tax has been replaced by a new significant economic presence tax, increasing from 1.5% to 3% of turnover. Additionally, a 5% withholding tax on digital platforms is expected to further diminish earnings for those operating in this space.

Gachagua emphasized his commitment to engaging with stakeholders in the digital industry to address these changes. “For our young people, those who are talented and in the online space, we are going to have a conversation with our young people so that they can tell me what they think we can do and what we can put in place so that their lives may be better,” he remarked.

He highlighted the importance of ensuring that young Kenyans can earn a living, express themselves, and have their talents recognized. “That is what I’m planning, but most importantly, I want to engage with the young people,” he concluded.

As Gachagua embarks on this mission to “rescue the payslip,” many Kenyans are watching closely to see how these discussions will shape the future of taxation and income in the country.

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