Kenya is currently facing a court ruling that questions the legality of a payroll tax introduced by President William Ruto last June. This measure, which aims to finance a low-cost housing program, was deemed illegal by three judges of the Nairobi Supreme Court. In particular, they highlighted that this tax was not integrated into a comprehensive legal framework and that it discriminated against informal workers.
This decision constitutes a major setback for the Kenyan government which was seeking to replenish its coffers thanks to this tax. Indeed, the country is facing galloping inflation and a depreciation of its currency, which has increased the cost of repaying its debt.
This case highlights the growing anger of the Kenyan population over rising prices, particularly of basic necessities such as food and fuel. Protests, sometimes violent, have erupted against William Ruto’s government over the past year.
This court decision reinforces the frustrations of the population and also highlights the government’s shortcomings in economic management. Indeed, rather than imposing new taxes on Kenyans, it might be wiser to put in place measures aimed at reducing inflation and stabilizing the currency.
In conclusion, this court decision questioning the legality of the payroll tax in Kenya is a blow to the government of William Ruto. It reflects the economic difficulties facing the country and highlights the growing concerns of the population in the face of rising prices. It is now essential for the government to find lasting solutions to recover the economy and address the concerns of Kenyans.