Caption: President Uhuru Kenyatta issued a directive to increase the non-taxable bonuses and overtime to Sh100,000 to cushion low-income earners.PHOTO:PSCU
President Uhuru Kenyatta Monday increased the minimum wage by 18 percent.
He also issued a directive to increase the non-taxable bonuses and overtime to Sh100,000 to cushion low-income earners.In addition, President Kenyatta directed Cabinet Secretary for Industrialisation, Adan Mohamed, to urgently convene a meeting with employers “to explore measures to cushion them from costs associated with non-labour factors.”
President Kenyatta has over the last two years progressively increased tax brackets and has cut tax rates for workers on lower income levels. Currently, the minimum taxable income is Sh13, 475.
“I understand that you want to have more disposable income to be able to meet your families’ needs. I am aware the workers on the lower income bracket are struggling to afford basic necessities. It is not fair that they should be taxed heavily,” said the President when he addressed the Labour Day celebrations held at Uhuru Park, Nairobi
The President said Kenya has one of the best pools of skilled workers in the world and that is why many Kenyans have found employment overseas adding that majority have positive experiences but there are those who have fallen into risky employment where their rights have been abused.
The President said the Government has streamlined the registration and management of foreign employment agencies.
“I strongly urge every Kenyan going abroad, to use the approved agencies. You should also make sure that you register at the Kenyan Embassy serving the foreign country you are in,” said President Kenyatta.