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Jobless Kenyans To Get Paid From ‘Unemployment tax’ Targeting Employed Kenyans

All jobless Kenyans, whether educated or not, are set to benefit a new government plan. The national treasury has plans to introduce unemployment insurance fund (UIF), which will cushion jobless Kenyans during these harsh economic times.

In this new development, Kenyans holding jobs will be obligated to remit a two percent tax from their incomes to go direct to UIF so as to cushion the jobless Kenyans.

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This is just one of the post COVID-19 economic recovery strategies proposed by the National Treasury. It is going to result to increased taxation for employed individuals, who already have other statutory deductions.

“The government will establish a UIF to cushion workers in financial distress by providing them with short-term relief when they become unemployed, or are on unpaid leave or unable to work because of illness,” said the National Treasury.

“The amount of contribution to the fund will be two per cent which include; one per cent paid by employees from salaries and another one per cent paid by the employers.”

Additionally, UIF will get ksh. 300 million from the ministry of planning spread across two financial years. Those who will be eligible for the tax will be both formally and informally employed Kenyans, who as per the current KNBS data stand at 15.9 M

It is projected that the UIF will solve Kenya’s endemic unemployment rate, which has been seriously hiked by the COVID-19 pandemic that has seen over 2 million Kenyans lost their jobs.

If these proposals are approved, Kenya will join other countries that are currently having a similar programme. In the US for instance, unemployment insurance funds give unemployment benefits to eligible persons who lose their jobs. The self employed and those who resigned from their jobs or were sacked are deemed ineligible.

Jobless persons will at least have some capital for their start ups.

1 COMMENT

  1. Knut should give a posive way forward on how best unemployed tax should be done and benefit the intended people BUT NOT TO OPPOSE THE GOOD IDEA OF GOVERNMENT.We are all people of God and these unemployed are our brothers and sisters who also becomes a burden to our net pay at home .And sometimes we fall into their hands as victims of their economic crimes for their survival.At the moment, knut frustrated it’s die-heart ordinary teachers by ignoring them and rewarding head-teachers,this led to most of teachers voluntarily withdrawing from knut.therefore knut has small number of members who nay NOT be willing to risk to go on strike.

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