Ruto Policies and Taxes Anticipated to Go Into Effect in 2024
Ruto Policies and Taxes Anticipated to Go Into Effect in 2024
Kenyans will suffer financially as a result of increased taxes and levies that the government announced and that will go into effect in January 2024.
The additional taxes and levies are intended to fund government operations while lowering Kenya’s reliance on borrowing, which has caused the country’s total public debt to surpass Ksh10 trillion.
National Assembly Majority Leader Kimani Ichung’wah has already tabled a bill seeking to create a legal framework to reintroduce the Housing Levy which has already been declared unconstitutional by the High Court.
Through the Affordable Housing Bill 2023, the legislator has proposed the establishment of the Affordable Housing Fund, which envisions a kitty that will draw contributions from Kenyans which will then be allocated to fund the legacy project.
According to the Bill, employers are supposed to deduct 1.5 per cent of the employee’s gross pay and remit it to the Fund.
President William Ruto plans to build at least 200,000 houses in line with Kenya Kwanza’s Manifesto which advocates for decent housing.
Kithure Kindiki, the interior cabinet secretary, announced new fees that will apply to Kenyans requesting various government services starting on January 1, 2024.
The government suggested paying Ksh300 and Ksh1000, respectively, for new Identity Cards (ID) and ID replacements under the new modifications. The cost of replacing a lost passport has increased from Ksh10,000 to Ksh20,000.
“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,” Kindiki stated.
Kindiki defended the new amendments by stating that they will enable the government to fund operations locally, protecting national sovereignty rather than having to borrow money from more industrialized nations.
“The necessity for Kenya to be self-sufficient in funding the National Budget, to wean the Country from unsustainable debt that poses serious threats to our sovereignty and the dignity of future generations, informs the intended revised charges, fees, and levies.” Kindiki offered a defense.
In the revised plan, the Cabinet Secretary also raised the cost of birth and death certificates from Sh50 to Sh200.
