President Uhuru Kenyatta has moved to cushion Kenyans from excessive taxation after ordering removal of some taxes for low income earners.
Speaking during the 2016 African Employers' Summit in Naivasha, Kenyatta directed a tax waiver on bonuses, overtime payments and retirement benefits for all low income earners.
The President issued the order to the National Treasury in an attempt to improve the living standards of the majority of Kenyans, as the extra earnings were deemed beneficial hence was unnecessary to impose levy.
However, the Head of State didn't specify the exact income bracket that would benefit from the new order, but said that the adjustments ought to be made in a way that would not increase the cost of employment.
“This will be done in a manner that does not place an additional burden on employers, or increase the cost of employment,” he instructed.
The order comes days after Central Organisation of Trade Union (COTU) pleaded with Mr Kenyatta to save employees from excessive levies.
The same call had been made by Nairobi Senator Mike Sonko who indicated that he would draft a Bill to be tabled in the Senate, in order to be exempt taxation on bonuses.
The Senator had stated that it was unfair to tax allowances since it was discouraging citizens from working hard to build their nation.
"It is wrong for such allowances to be subjected to taxes because most of them rely on them. We should not overtax our workers because they do a lot in building the nation. I am working to serve City residents and I have done my best to help people make a living," he declared.
