State announces plans to tax ‘working class’ to pay jobless citizens

Working class will be taxed some percentage so that to support the unemployed persons in the society. The government has said.

National Treasury in planning to impose a 2 percent tax on any employed Kenyan which amount will be used to cushion the less fortunate citizens.

Details indicate that this was triggered by the effects caused by the Coronavirus effects and to bring the nation to a balanced economy recovery. The State plans to apply this strategy which they think will be a sure post Covid-19 recovery strategy.

The government claims that the 2 percent tax will be shared between the employer and their employee which amount will, for the first time in Kenya, be used to set up the Unemployment Fund UIF.

“The government will establish a UIF to cushion workers in financial distress by providing them with short-term relief when they become unemployed or are on unpaid leave or unable to work because of illness.

“The amount of contribution to the fund will be two percent which includes one percent paid by employees from remuneration paid and one percent paid by the employers,” Treasury statement read in part.

With this plan in effect, the State is targeting to raise a staggering sh 300 million by 2022 to help support every Kenyan and especially those who were left jobless in the Covid-19 pandemic span.

In the past, the government has been providing a cash transfer program that has been cushioning the elderly and most vulnerable persons in the society. The priogram was launched in April 2020.

The State also has Inua Jamii Social Protection program that makes sure some cash reaches to orphans and helpless families especially vulnerable kids. Elder people and the disabled men and women also benefited.