Kenyans should now brace themselves for tougher times in terms of cost of living, the taxes and probably they should change their lifestyle to fit the changes that are going to happen to them. This is because, in as much as the government is confident in the changes they are making, the grass to feel pain is the common citizen who earns little from labor.
New laws have been imposed and the demand for the common mwananchi to dig deeper is getting higher by today. Recently the NHIF fund that has been running in the health sector was scraped of and under the Ruto’s care the social health finance was introduced. The bill contained Primary Healthcare fund, Digital Healthcare fund and the Chronic and critical illness fund which the head of state signed with the hope of improving the health sector.
“These laws will transform healthcare in Kenya: they will save lives, empower communities and make us a stronger and healthier nation.” President Ruto said.
President William Ruto during Mashujaa day where he promised a healthier nation (star)
The bill demands for employees to pay a minimum of 300 shillings and the ones who are privileged to be earning high income are expected to contribute an amount of 5000 shillings.
This is way much higher when compared to the National Health Insurance Fund that has been running ever since. NHIF contributions required a minimum of 150 shillings and for the high-income earners, 1700 shillings per month was enough. This however changed in 2021 where the contributions for low-income earners ranged from 350 to 700 shillings. The new law now demands for a double of that.
This comes amidst the rising of taxes, the daily increase of cost of food in the market, the price of fuel which is expected to rocket due to the Israel-Hamas war, the value of one dollar is also expected to rise and the ripple effect of Covid 19 is still being felt especially with businesses. All these are things that Kenyans are still not into terms with yet.
The funds are expected to be contributed by every Kenyan house hold, any ordinary person who has lived in the country in the country for more than 6 months, the national government, the county governments and all employers according to the Act.
The finance act that was introduced this year during budget reading introduced the housing levy which required a contribution 1.5 percent of the gross pay. The rates for NSSF contributions also raised from 200 shillings to 1,080 shillings,
The value added tax was also increased to p[products that use petrol something that has changed the commuting life of passengers. Industries and factories have also felt the pinch and have since been complaining and want the president and the stakeholders involved to settle at one amount that will be charged on taxes instead of shifting and introducing more taxes that demand more money from Kenyans. This is because, companies have been slashing employees and declaring them redundant because they are not in a position to hold many of them.
