• Ugenya MP David Ochieng said Kenyans in the high-income bracket must be willing to support low-earners
• In his view, the bill should be passed regardless of how unpopular it is
• Trade unions have already threatened to call for industrial action if the proposed taxation in the bill is enacted
Ugenya MP David Ochieng has voiced support for the contentious Finance Bill 2023, which seeks to change the Employment Act by allowing deductions of three per cent from employees’ basic pay to help fund President William Ruto’s ambitious plan to build low-cost homes.
Ugenya MP David Ochieng
Speaking on Monday during the DayBreak program on Citizen TV, Ochieng said Kenyans in the high-income bracket must be willing to support low-earners.
“At some level, Kenyans who earn well must be willing to support those who don’t. Those of us who have these houses or qualify for them should be willing to fund the construction and growth of affordable housing for those who can’t pay for it,” he said.
In the MP’s view, the bill should be passed regardless of how unpopular it is. He likened it to other mandatory deductions such as Pay As You Earn (PAYE), which Kenyans might not wish to part with if given a chance to choose.
“The reason of the law is to compel. If you are asked if you’re willing to pay PAYE, not everyone likes it… as far as the Finance Bill is concerned, in my opinion, we must create a culture of saving in this country to avoid what we are facing now. Part of the reason we are not paying salaries on time is that we are paying a very huge debt,” Ochieng’ said.
The Finance Bill 2023 also proposes a 15 per cent withholding tax on payments related to the monetisation of digital content, which poses an impact on the income of creators who make their living by making digital content.
The bill additionally seeks to introduce a tax on human hair, eyelashes, switches, and artificial nails to rake in more revenue from the cosmetics industry.
Trade unions have already threatened to call for industrial action if the proposed taxation in the bill is enacted.
They want MPs to reject the proposals and have called upon the government to involve workers’ unions in deliberations on the best way forward.
COTU Secretary General Francis Atwoli said the proposed taxation measures can be counterproductive and warned the government to be cautious, while the opposition has dismissed it as a burden to Kenyans who are already grappling with the high cost of living.
