Government and investors have been warned to look forward to industrial action from workers on salary increment to curb high inflation caused by the new financial bill.
The Union of Civil Servants Secretary general Tom Odege said workers, including civil servants, are mulling a strike or a go-slow to protest the high taxes imposed on their salaries in the Finance Act 2023/2024.
The act was signed into law by President William Ruto on Monday, a move Odege said was a big disappointment because it is a big burden to the workers.
“As public servants we have no shortcut because our pay slips are in the hands of the government which deducts the taxes at will, but I expect everybody to resist this thing. It is killing the workers. It is a real burden to the workers,” Odege said.
He said workers were losing almost 50 per cent of their income after the introduction of the housing levy, increased tax on PAYE, and the 2.5 deduction on NHIF.
“As the secretary general of union Kenya civil servants and as the national chair of public service union, I am ready to remain alone but I am not going to take this one hands down. We must defend workers and cannot allow ourselves to be imprisoned,” Odege said.
The secretary general who promised to rally workers on an industrial action said they would resist the high taxes imposed on the workers.
He said recent incident in Homa Bay county where his Emuhaya counterpart Omboko Milemba and Chairman of Kuppet was chased by teachers for supporting the bill, was a clear indication that it was not popular.
He was speaking at Alendu market in his constituency during social function on Monday.
His sentiments was shared by National Assembly Minority leader and Ugunja MP Opiyo Wandayi and the ODM party chairman John Mbadi who said workers deserve salary increase.
The three leaders warned leaders of trade unions who betrayed their members by supporting the bill to step aside from their roles.
“Workers whose pay slips are depleted by new taxes have a right to industrial action until they are given a salary increment. Ruto after forcing the bill to sail through must ensure that there is salary increment for workers. Otherwise workers will go home without money,” Wandayi said.
Mbadi said the country is headed to dangerous grounds saying there “is no economy that can grow by overtaxing its citizens. It has never worked anywhere. If you look at the taxation rate in Kenya, there is no country in the region with that kind of taxation.”
