This archive report was first published on 22 November 2019.
On November 22, 2019, President Uhuru Kenyatta announced a tax exemption for firms offering services such as cleaning and security, aiming to shield low-income earners from paying new taxes.
This move is expected to benefit cooks, waiters, and security personnel who live in slums and may now be able to afford better housing and education for their children.
However, not everyone agrees with this decision. Some argue that exempting low-income earners from paying taxes will create an uneven tax burden, placing the responsibility on professionals and potentially slowing down development.
As Kenya is the most taxed country in the world, with a significant portion of its population unemployed, the government's decision to give back to society by saving poor Kenyans from paying taxes is seen as a positive step.
But critics argue that everyone should pay equal taxes, no matter how small the amount, to contribute to the nation's development. They also point out that jua kali workers, who earn significant amounts, are not being taxed, and that the government should implement a system to track and tax all citizens, including through the Huduma number.
