Another 1 % New Tax Rates Proposed for Salaried Kenyans .
All the salaried Kenyans will continue facing new monthly tax deductions rates after the Unemployment Insurance Bill 2022 was tabled to the parliamentary budget office proposing go 1% annual deductions.
The bill was presented on Thursday 7th August 2023 for consideration.
In this be bill that was sponsored by Ikolomani Member of Parliament Bernard Shinali , the employers and their employees will be forced to make monthly contributions to the kitty.
According to the law maker from Ikolomani, the Fund was inspired by South Africa where employer and employee are deducted 1 % cent each.
Shinali said that the msin objective of the proposal is to provide for the payment of unemployment benefits to employees who become unemployed or their beneficiaries.
He added that this will be possible upon establishment of an Unemployment Insurance Fund to which both the employer and employee will contribute. This is as per to some section of the bill.
The mp states that the new tax rates proposal will help out-of-work employees be able to navigate tough socio-economic times.
He added that apart from salary deductions, this new tax kitty will also be replenished through parliamentary appropriations from the national government,the county government funds and donations and grants from development partners as well.
The new tax rates Bill further establishes that the funds will be under the custody of Unemployment Insurance Authority,a body that will be established through an act of parliament.
It is further proposed that the Authority will take the form of set rules and laws of a body corporate where it will have a board of nine members and a chairperson.
Just incase the new tax rates proposal bill pass in parliament,it means that the Treasury Cabinet Secretary will have powers to exclude certain cadre of employees from the new mandatory salary cuts based on the tax rates .
Changes in the salary cuts will therefore be made through the advice of the Salaries and Remuneration Commission (SRC), a body that sets salaries for state officers and public officers.
According to the new tax rates bill demands , the kitty beneficiaries will be those aged between 15-64 years and have been unsuccessfully looking for work for four consecutive weeks without success.
Another 1 % New Tax Rates Proposed for Salaried Kenyans