Salaried Kenyans Set For Relief In Proposed Tax Changes
Atwoli argued that switching to basic salary for tax calculations would ease the burden, especially for workers putting in extra hours to earn overtime and bonuses.
Viral Tea Ke Writer 
Central Organisation of Trade Unions (COTU) Secretary General, Francis Atwoli, is calling for taxes on employed Kenyans to be based on basic salary instead of gross pay.
Speaking at Labour Day celebrations at Uhuru Gardens on Thursday, May 1, he argued that the current method, which taxes the entire gross salary, cuts too deeply into workers’ take-home pay.
Atwoli argued that switching to basic salary for tax calculations would ease the burden, especially for workers putting in extra hours to earn overtime and bonuses.
"The taxes, such as the Housing Levy, should not be based on the gross salary but on the basic salary so that what people work extra for in the gross is not interfered with," he remarked.
COTU Secretary General Francis Atwoli. /CITIZEN DIGITAL
Adding "There are people who may have toiled very hard to work overtime, and they do not realise anything."
At the same event, Atwoli urged President William Ruto to reconsider the Affordable Housing Program and scrap the deposit requirement.
He pointed out that many Kenyans are already financially stretched, and instead proposed that workers should be allocated houses based on their payslips, without needing to pay upfront.
Right now, the program demands a 10 percent deposit of the house’s value, followed by monthly payments — something Atwoli says is out of reach for most.
At the event, Atwoli also criticised the government for outsourcing labour, saying it was undercutting efforts to meet revenue goals.
He urged the government to ensure outsourced workers are subjected to the same statutory deductions as local employees, arguing this would boost Kenya’s tax collection.
Atwoli also weighed in on former U.S. President Donald Trump’s controversial policies, saying they gave Kenya a chance to reassess its direction.
"Donald Trump’s policies, which are focused on building and manufacturing capabilities of the US through self-reliance, call for all of us to rethink how we can be free and independent economically," he said.
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