By Brian Kiprono - Reporter
Kenya, 11 August 2026 - Former Deputy President Rigathi Gachagua has called for a review of taxes and statutory deductions, arguing that Kenyan workers are taking home less money as the cost of basic goods and services continues to rise.
Gachagua wants the government to suspend the Affordable Housing Levy, lower PAYE tax bands and review the petroleum pricing framework, saying the measures would put more disposable income back into workers’ pockets.
Speaking during a media briefing at the Democracy for Citizens Party (DCP) headquarters on Tuesday, Gachagua said the tax burden had become a major contributor to the high cost of living.
"Once again, I call on this government to cushion the payslip by suspending the Affordable Housing Levy and reducing the PAYE tax bands," he said.
He argued that reducing deductions from workers' salaries would offer more immediate relief to households struggling with rising food, fuel and transport costs.
"This, together with the review of the petroleum price framework, will give Kenyans increased net income," Gachagua said.
Gachagua claimed that an average worker could lose between 45 and 50 per cent of their earnings through taxes and other statutory deductions, leaving households with less money to meet their daily needs.
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He illustrated his argument using the case of a teacher earning Sh50,000 a month, saying the worker's take-home pay had fallen from about Sh42,000 in 2022 to roughly Sh38,000, even as household expenses increased.
"A punitive and unpredictable tax regime is one of the principal causes of the high cost of living," he said.
Gachagua argued that government policy should focus on increasing workers' disposable income rather than introducing measures that further reduce their monthly earnings.
His proposals come as the former Deputy President positions himself as a leading critic of the Kenya Kwanza administration's economic policies ahead of the 2027 General Election.
Gachagua Calls for Suspension of Housing Levy
DCP leader claims the tax burden has become a major contributor to the high cost of living.