5 Ruto Proposals, Directives That Threatened Kenyans' Pockets In 2023

The conversation regarding the high cost of living in the country traversed Kenya's political, social, and entertainment circles, name it...but 2023 has seen President William Ruto's government implement directives and table proposals that have sparked fierce opposition between him and members of the public.

From the doubling of Value Added Tax (VAT) on fuel to the Housing Levy, from the increase in charges of acquiring IDs and passports to the proposed exorbitant increase in charges by the National Transport and Safety Authority (NTSA), the pockets of the ordinary Kenyan earning a source of income have been under constant threat this year.

Of particular focus has been the series of taxes fronted by Ruto's administration while being keen on reducing the potential of the payslip, a matter which has triggered a ripple effect from freezing hirings to mass firings.

We look at the crazy directives and proposals that have threatened the security of your pocket this year:

Housing Levy

Before it was declared unconstitutional by the High Court, the controversial housing development levy contained in the Finance Act, 2023 was fiercely opposed to the point that the government struggled severally to explain why it was deducting 1.5 per cent from all salaried Kenyans in support of President Ruto's Affordable Housing Programme.

An illustration of the Affordable Housing Programme by Boma Yangu Initiative under the National Housing Corporation. /BOMA YANGU KENYA

Employees were to charged a 1.5 per cent tax on their gross salary starting July 2023, with employers expected to match the 1.5 per cent housing deduction with proceeds going towards the National Housing Development Fund (NHDF).

The government expressed commitment to turn the housing challenge into an economic opportunity to create quality jobs. This will be achieved through facilitating the delivery of 250,000 houses per annum and enabling affordable housing mortgages for low-income Kenyans living in urban areas who dreamed of owning a home.

Despite Ruto's complaints, the Housing Levy was nullified by the High Court following a ruling in response to a suit filed by Busia Senator Okiya Omtatah.

The court however granted the government's plea for a 45-day conservatory order regarding the Housing Levy until January 10, 2024, while it rushed to the Court of Appeal to contest the ruling.

Increase in ID, Passport Charges

The government, through Interior Cabinet Secretary (CS) Kithure Kindiki, announced an increase in service fees for key government services. including national identity (ID) cards and passports, with news of the announcement immediately pinching Kenyans where it truly hurts.

The government announced an increase in fees for replacing identity cards from Ksh100 to Ksh2,000 and the fee for first-time ID applicants to Ksh1,000 before it was revised to Ksh300 for first-time applications and Ksh1,000 for those who lose their IDs.

Kenyans seeking to change their particulars in their ID card will be forced to part ways with Ksh1,000 while those seeking identification reports will have to pay Ksh1,000 up from Ksh300, with the proposals set to take effect on January 1, 2024.

The initial proposal also attracted mockery from some Kenyans, giving an example of how a football jersey by an English Premier League (EPL) team sold in the country at scores of jersey shops cost less than the proposed cost of replacing an ID.

It gets worse; the government also raised the fees for ordinary passports from Ksh4,500 to Ksh7,500, for an ordinary 34-page passport. Replacing a lost passport will cost you Ksh20,000 up from Ksh10,000.

"On the particular issue of acquisition of National Identity Cards by previously not registered citizens, the Government shall defray the costs of the revised charges, fees and levies through a waiver for indigent Kenyans who demonstrate inability to pay," stated the CS.