Treasury Cabinet Secretary John Mbadi has defended the government’s tax policies, dismissing claims of over-taxation, particularly for middle-income earners. Speaking at the National Assembly Mid-Term Retreat in Naivasha, Mbadi argued that additional deductions, such as the Housing Levy and Social Health Insurance Fund (SHA), have been misrepresented as excessive.
Using a salary example of Sh60,000 per month, he explained that the combined deductions amount to Sh2,550, with an actual increase of only Sh85 compared to previous NHIF contributions. He emphasized that while high-income earners may feel the impact more, middle-class workers are not significantly affected.
His remarks come amid growing public frustration over increased deductions and the rising cost of living. While the government defends these measures as crucial for development projects, critics argue that the cumulative effect of levies is straining household incomes and slowing economic growth.
