The Federation of Kenya Employers (FKE) has called on the government to review several statutory deductions, including the Housing Levy, arguing that the tax burden is heavy for Kenyans, affecting their productivity and business sustainability.
FKE is proposing a cap on the payment period for the tax, saying it is among the many statutory deductions that have significantly reduced workers' take-home pay.
Speaking in Kisumu during the FKE annual general meeting on Thursday, FKE CEO Jacqueline Mugo said that the numerous deductions are making employers struggle with complying with the 2007 Employment Act, which prohibits them from deducting more than two-thirds of an employee's gross salary. "In many instances, employers have to look at where they can help the employees or remove some of the non-statutory deductions.
With the current level of deductions, businesses are under immense pressure, and employees are left with limited disposable income,'' Mugo said.
