The Central Organisation of Trade Unions (COTU) Secretary General Francis Awoli advised the government to impose stricter regulations on outsourcing firms including those operating in the security sector as Treasury seeks to expand the country's tax base.
In a statement dated Friday, January 20, Atwoli called on the state to crack down on outsourcing companies such as security companies which the union claimed did not pay taxes despite employing millions of Kenyans.
Additionally, Atwoli stated that research done by COTU determined that private security firms employed more than 1 million Kenyans and paid them at a rate that was below the minimum wage.
The SG added that those employed by the security farms worked under difficult employment terms and conditions, explaining that they were not paid statutory deductions including National Health and Insurance Fund (NHIF), and National Social Security Fund (NSSF).
“The government should ensure that the 5,000 outsourcing companies regularise their employment terms and conditions by ensuring that they pay all the statutory deductions.
“Most private security firms and outsourcing companies in the key sectors of the economy don't pay any taxes to the government despite employing millions of Kenyans,” Atwoli argued.
Furthermore, COTU asked the government to formalise jobs in the informal sector to be able to collect more revenue and fulfill the promises made to Kenyans.
“The government should work with other partners in the labour sector. It is possible to collect taxes even from vegetable vendors if the government uses incentives,” he added.
COTU, in its letter, also opposed a plan by the state to monitor mobile money transactions which was unveiled on Thursday, January 19.
He, therefore, invited the National Treasury to find alternative ways of sustaining the economy stating that monitoring mobile transactions would be counterproductive.
“COTU would like to advise the government of President William Ruto not to hurt Kenyans in their mission to collect enough taxes. The majority of users of mobile banking are hustlers and the poor,” Atwoli lamented.
He added that the move would ultimately drive Kenyans away from using mobile money platforms destroying the platforms as a result.
