NAIVASHA, Kenya – Treasury Cabinet Secretary John Mbadi has dismissed claims that Kenyans are being overtaxed, arguing that critics are exaggerating the burden on middle-income earners.
Speaking during the National Assembly Mid-Term Retreat in Naivasha, Mbadi said the introduction of new deductions, such as the Housing Levy and the Social Health Insurance Fund (SHA), has been misrepresented as excessive taxation.
“There is this thing of saying that we are overtaxing. I have looked at the taxes because I was trying to see how I can make the payslips better,” Mbadi said.
In a detailed presentation to lawmakers, the CS broke down the impact of these levies on individuals earning KSh 60,000 per month, a bracket commonly associated with Kenya’s middle class.
According to Mbadi, the Housing Levy (1.5%) and SHA (2.75%) amount to a combined 4.25% deduction, translating to KSh 2,550 monthly.
He argued that this increase is marginal compared to past deductions under the now-replaced National Hospital Insurance Fund (NHIF).
“If you are earning KSh 60,000, the NHIF contribution was KSh 1,700. Under the new deductions, you are only paying KSh 85 more. Is that really over-taxation?” he posed.
Mbadi further claimed that high-income earners bear the brunt of taxation, while the middle class has been relatively cushioned.
“Those who are hurt by the taxes are those that Kenyans may call earn super-salary,” he said.
His remarks come amid growing public frustration over rising living costs and increased salary deductions.
Critics argue that while individual levies may seem small, their cumulative effect—combined with inflation and other economic pressures—is shrinking disposable incomes and slowing growth.
The Ruto administration has defended the taxes as necessary to fund key projects, including affordable housing and universal healthcare.
