This archive report was first published on 24 June 2020.
On June 24, 2020, the Kenyan Parliament adopted recommendations to exempt retirees aged 65 and above and the National Social Security Fund (NSSF) from paying taxes.
The move comes after Treasury proposed a tax of up to 25 percent on the monthly pay of pensioners and another tax on NSSF's annual earnings, effective July 1.
Members of Parliament argued that the new tax on retirement savings would amount to double taxation, as pensioners already paid taxes on their monthly incomes during their working days.
‘How do we continue milking the old cow? They paid taxes during their working days and this is the time they are vulnerable. If we tax people aged 65 years and above it is wrong,’ said Tinderet MP Julius Melly.
More than 80 percent of senior citizens work for basic consumer needs, raising questions about the adequacy of pension payouts and coverage of retirement benefits.
