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Politics & Govt

Revealed! Why Life is becoming difficult for Kenyans after introduction of new taxes.

May 31, 2025 Hillary Kangwana

Life is becoming gradually unbearable for most Kenyans in the middle and low class earners. The cost of living is on the rise as days pass by. Prices of commodities have skyrocketed in a span of few years. The future isn’t promising either.  It is a tale-tale life for most Kenyans and teachers aren’t spared either. The future is bleak; increased cost of living with meager pay, most Kenyans are doomed!

A raft of measures, put up by the Jubilee government to fund its budget, have had a major negative impact on the quality of living for most locals. Among other decisions that have made life unbearable for most Citizens, we sample the most stinging ones::

1. Increase of M-Pesa mobile cash tax to 20 percent.
The cost of sending money through mobile services such as Safaricom’s   M-Pesa will increase further after President Uhuru Kenyatta proposed to raise tax on the services from 12 per cent to 20 per cent.
  1. ATM, Banking charges to go up as levies are doubled: President Uhuru, yesterday, doubled the tax on bank charges income from 10 percent to 20 percent. This means that you will pay more for banking services like: ATM withdrawals and deposits, over the counter transactions among other services.
  2. New Housing Scheme: Workers will be deducted 1.5 per cent from their pay, monthly, to create a fund to finance a new low cost housing fund after Uhuru reinstated the levy.
  3. Massive budget cuts: This year’s budget has been re-adjusted downwards from the initial 3.02 trillion to 2.9 trillion. The cuts will affect utility services and projects like: The Constituency Development Fund (CDF), National Affirmative Action Development Fund (NADF) and the allocation of funds to roads construction.
  4. The 8 percent VAT on fuel will mean that the price of Petroleum products (and infarct all house hold commodities) will trade at higher prices; as manufactures pass the production and transport costs to consumers. The reduction of Petroleum products VAT from 16 percent to 8 percent takes effect this month.
  5. 15 percent excise cost on internet usage: This tax will mean that consumers will dig deeper into their pockets to purchase the now expensive data bundles. The increase in tax from 10 to 15 percent will affect both data and voice services.
  6. Betting Winning amounts to be taxed at 20%.
  7. Adulteration tax on Kerosene goes up to a rate of Kshs. 18 per litre.
  8. A contributory statutory pension scheme is also on the way for all workers. This new scheme will see government employees forfeit 7 percent of their basic pay to fund the scheme.

Indeed, it is tough times ahead for many Kenyans!

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