'Rescue the payslip': Gachagua launches new mission in Ruto counter-offensive

Former Deputy President Rigathi Gachagua has continued his onslaught on President William Ruto’s administration, criticizing the government’s new tax policies and the heavy burden placed on ordinary Kenyans.

Speaking in a video from his Wamunyoro residence in Nyeri County, Gachagua expressed his concern over the increased tax deductions set to affect many workers, likely referencing the Tax Amendment Act and the Tax Procedures Act which took effect on December 27, 2024.

Among the most notable changes in the Act is the doubling of National Social Security Fund (NSSF) contributions for workers earning above Ksh.36,000, set to increase from Ksh.2,160 to Ksh.4,320.

“We want to rescue the payslip because the payslip iliguzwa na iko shida mingi sana. (We want) to restore the dignity of the payslip so that the people are able to do their things,” said Gachagua in a TikTok live video.

The enactment of the Tax Amendment and the Tax Procedures Acts will also affect the digital sector. The digital service tax has been replaced with the significant economic presence tax, which increases from 1.5% to 3% of turnover.

Additionally, a 5% withholding tax on digital platforms will likely reduce earnings for players in the sector.

Gachagua added that he intends to hold talks with players in the digital space to find a way forward regarding the new taxes

“For our young people, those who are talented and in the online space, we are going to have a conversation with our young people so that they can tell me what they think we can do and what we can put in place so that their lives may be better,” said the ex-DP.

“They can earn money, they can be able to communicate, they can be able to be heard, their talents can be acknowledged and everybody can know who has power to do what…that is what I’m planning but most important is to engage with the young people.”