Thousands of civil servants are now taking home less than a third of their net salaries due to rising statutory deductions, prompting Parliament to summon the National Treasury for explanations. The Public Accounts Committee (PAC) has raised concerns over violations of labour laws, which prohibit deductions exceeding two-thirds of an employee’s basic pay.
Under President William Ruto’s administration, new levies including the 1.5% Housing Levy, 2.75% Social Health Insurance Fund (SHIF), and higher NSSF contributions have significantly reduced take-home pay. Butere MP and PAC Chairperson Hon. Tindi Mwale warned that the Employment Act’s protections are being rendered obsolete by overlapping taxes.
“The law is no longer practical due to multiple tax deductions eroding workers’ earnings,” Mwale stated, referencing Section 19(3) of the Employment Act, 2007. The committee has directed the Treasury to consult Attorney General Dorcas Oduor on revising or scrapping the one-third rule, given the unsustainable burden on civil servants.
The issue emerged during a session with Correctional Services PS Dr. Salome Beacco, who faced audit queries. Lugari MP Hon. Nabii Nabwera cautioned that without intervention, the problem will persist in future audits. Funyula MP Dr. Wilberforce Oundo blamed Parliament for passing punitive taxes, stating, “If blame is to be placed, it lies squarely with MPs who sang ‘Hallelujah’ as these laws sailed through.”
An analysis of June 2023 payroll data revealed 4,082 civil servants earning below the legally protected threshold, violating public service guidelines. With workers struggling to make ends meet, pressure is mounting on the government to review taxation policies or risk a demoralized public sector.
As PAC pushes for urgent reforms, the Treasury’s response could determine whether Kenya’s civil servants regain financial stability or face further strain from an increasingly unaffordable tax regime.
