A Kenyan data analyst Elijah Samuel Kirichu has demonstrated how an average Kenyan family man earning a monthly salary of Sh. 72,000 is ending 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 taxaes 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.
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 72,000 KES (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 12,000 KES
2). So, our brother Elijah takes home 52,000 KES (the 19,000 KES is gone with the Government)
3). Brother Elijah is a committed Church Member and so he does a 10% TITHE from the balance of 52,000 KES which is 5,200 KES
4). So, Brother Elijah now has a balance of 46,800 KES
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
6). His rent is roughly 14,000 KES, but again, about 1,100 KES goes with the government as tax passed to him by the landlord
7). Brother Elijah spends 6,000 KES on fuel/transport per month, but again, about 40% goes to taxes; that is, 2,400 KES
8). Brother Elijah does a shopping worth 10,000 KES to cater for his family of 4, but again, about 16% goes to taxes which is 1,600 KES
9). Brother Elijah consumes electricity worth 2,000 KES (about 76 Units), and another 800 KES goes to the government through TAXES
10). Brother Elijah has additional bills like telephone, water and other errands, estimated at 3,000 KES, and again, about 300 KES goes to taxes
From Bullet 5 to 10, the total additional taxes are almost 6,200 KES (so, taxes and deductions zimefika 27,000 KES). 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 5,000 KES.
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.