Saturday, July 26, 2025

How family men in Nairobi earning Sh72,000 end up broke every month

How family men in Nairobi earning Sh72,000 end up broke every month

A Kenyan data analyst Elijah Samuel Kirichu demonstrated how average Kenyan family men earning a monthly salary of Sh72,000 end up struggling because of heavy direct and indirect taxation by the government.

Mr. Kirichu’s analysis comes at a time when many Kenyans in the average income cadre are struggling to survive due to a series of punitive taxes and levies that are being meted by the government.

The effects of these taxes and levies are now being felt directly on the payslip or indirectly in the purchase of items that were somewhat affordable before September 2022.

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Well, here is the breakdown by Mr. Kirichu as he explained it on his social platform:

Reflect on this (for another time), Elijah is employed in a formal job, and earns Sh72,000 (72,000 is the average wages for those in the formal employment in Kenya)

1). At source, the salary is subjected to PAYE, NHIF, NSSF and Housing Level, all estimated as Sh12,000.

2). So, our brother Elijah takes home Sh52,000 (the Sh19,000 is gone with the Government)

3). Brother Elijah is a committed Church Member and so he does a 10 percent tithe from the balance of Sh52,000 KES which is Sh5,200.

4). So, Brother Elijah now has a balance of Sh46,800.

Our Brother Elijah has a number of bills to pay, including rent, shopping, and other bills. To balance income and expenses, Brother Elijah stays in Kahawa (in a two bedroom house) with his Wife and 2 kids

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6). His rent is roughly SH14,000, but again, about Sh1,100 goes with the government as tax passed to him by the landlord

I am a security guard in Nairobi. This is how I survive on Sh18,000 salary

7). Brother Elijah spends Sh6,000 on fuel/transport per month, but again, about 40 percent goes to taxes; that is, Sh2,400

8). Brother Elijah does a shopping worth Sh10,000 to cater for his family of 4, but again, about 16 percent goes to taxes which is Sh1,600

9). Brother Elijah consumes electricity worth Sh2,000 (about 76 Units), and another Sh800 goes to the government through TAXES

10). Brother Elijah has additional bills like telephone, water and other errands, estimated at Sh3,000, and again, about Sh300 goes to taxes

From Bullet 5 to 10, the total additional taxes are almost Sh6,200 (so, taxes and deductions zimefika Sh27,000). Brother Elijah bado has other bills

11). Since there is no public school in the hood, his kids are in Private School in the hood for CBC, and his average monthly fees is Sh5,000.

Mind you, it’s the same government which he has been paying heavily taxes to which has made Public School inaccessible in the area or suboptimal

12). Brother Elijah (although he has NHIF) will still rely on Private Health Care since the same Government has made Public Health suboptimal

By Now, Brother Elijah is operating on a ZERO BALANCE from what he earned! And the Government took nearly 40% of his income directly and indirectly in form of taxes and levies; and unfortunately, service delivery is still suboptimal.

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