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New Salaried Kenyan Tax to Help Unemployed

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New Salaried Kenyan Tax to Help Unemployed

Unemployed Kenyans would benefit from a new tax on salaried Kenyans. Kenyans on salaries risk new wage cutbacks as a result of the 2022 Unemployment Insurance results, which were given to the Parliamentary Budget Office for consideration on Thursday, August 7, 2023.

The measure, introduced by Ikolomani Member of Parliament Bernard Shinali, proposes monthly contributions from businesses and employees to form an unemployment insurance fund, modeled after the South African system, in which employers and employees each contribute 1%.

The primary goal of this idea is to provide unemployed workers or recipients with unemployment benefits. The goal is to establish an unemployment insurance fund by payments from businesses and employees, which will eventually assist those facing economic hardship as a result of unemployment.

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The fund also receives contributions from the national government, regional government financing through legislative contributions, and gifts and grants from development partners, in addition to wage reduction.

According to the bill, the fund will be administered by the Unemployment Insurance Agency, which will be established by a Parliamentary Decree. The agency will operate according to certain rules and regulations, with a nine-member board and a chairperson.

The agency’s functions include Treasury management, advising the Cabinet Secretary on unemployment insurance policies and laws, counseling both levels of government on unemployment and unemployment insurance concerns, and supporting policy implementation.

If Parliament passes the Shinali-sponsored measure, the Treasury Secretary will be given the authority to exempt some categories of personnel from statutory compensation cutbacks based on the recommendations of the Salaries and Remuneration Commission (SRC), which determines civilian salaries. PNS waiter.

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After four weeks of unemployment, Kenyan nationals between the ages of 15 and 64 are eligible for Unemployment Insurance Fund benefits.

Furthermore, these individuals must not be impaired in such a way that they would be unable to work if employment possibilities were available.

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