By Billy Mijungu
For the past three years, the National Treasury under the Ruto administration has relentlessly tightened its grip on the payslip. The justification has always been debt management, a convenient argument that has come at a steep cost to ordinary Kenyans. It may now be time to look back and introduce reliefs that ease this burden on workers and stimulate the wider economy.
The government once faced a difficult choice, either fall under the weight of debt or tax aggressively to survive.
That survival phase now appears to have stabilized. Debts have been rescheduled, commercial loans retired, bonds refinanced, and the country is implementing a safer borrowing framework.
If the storm has passed, it is only fair that the pain on the payslip should also ease. Kenyans have endured enough deductions in the name of fiscal recovery, yet the promised outcomes are still slow to materialize.
A structured and gradual reduction of levies could be a starting point. Each financial year could allow a small but deliberate cut that would restore confidence and purchasing power to workers.
The government has built a revenue war chest, but absorption of these funds remains slow. Some of the collections, especially under the housing levy, are not translating into immediate benefits for contributors.
The housing units being constructed are not being sold as fast as they are built, and many Kenyans still cannot afford them.
Since these projects sit on public land and are financed using taxpayer money, the government should reconsider the heavy prepayment models that lock out many citizens. A rent-to-own program implemented through a transparent lottery system could help make the dream of home ownership a reality for more Kenyans.
Such an approach would stimulate uptake, inject optimism into the housing market, and demonstrate goodwill from the state.
Easing the pain on the payslip will also depend on effective revenue collection and responsible management. The government must seal tax loopholes, become more business friendly, and create an environment where enterprises can thrive.
When businesses grow and more people are formally employed, the tax base naturally expands, making it easier to design sustainable reliefs.
So much can be done to restore fairness and hope to hardworking Kenyans. The question remains, are our souls winning?
