NAIROBI – Congressional members are considering amending the 2007 Employment Act, citing the impact of increased tax credits under President William Root’s administration.
The National Assembly Open Committee (PAC), chaired by Butere MP Tindi Mwale, has raised concerns about the rules and stated that several state departments have already violated the requirements and that enforcement is unrealistic.
Over the past two years, Congress has passed a series of new enforcement taxes, with many employees working to reduce pay slips.
A report from the Audit General for fiscal year 2023/2024 revealed that 20 Irrigation Bureau employees received net wages below a third of the legally required funds.
Appearing before the committee, Irrigation Principal Ephantus Kamoto acknowledged the issue, which was attributed to recent tax measures.
“The necessary actions have been taken and affected officers have been informed to comply within 14 days and instructed to fail to be disciplinary action against them,” Kamoto said.
Financial tensions have been exacerbated by deductions such as the 1.5% housing collection and the 2.75% compulsory social insurance fund (SHIF), significantly reducing employee disposable income.
Because of the scenario, many workers are currently bringing the threshold for a third of base salary closer to instability or raising concerns about financial sustainability.
Members of Congress sitting on the oversight committee are calling on the Department to consult with the Attorney General’s Office on how to deal with growing concerns for civil servants, which are less than a third of legally mandated salaries.
This follows concerns raised in the audit report, and it has been revealed that a significant number of government officials are currently below the threshold due to an increase in statutory deductions.
Lugari MP Nabii Nabwera questioned the feasibility of the law based on the current economic situation, noting that new taxes introduced by Congress in sectors such as Housing, Social Health Insurance (SHA) and the National Social Security Fund (NSSF) have left financially tense civil servants, including MPS.
“We asked the NSSF, SHA and housing sectors to guide the Treasury following the introduction of taxes. Many civil servants were already violating their salaries. Are these rules still in office? We asked the Treasury to consult with the Attorney General about how to navigate this issue considering current financial reality,” Nabwera said.
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Funyula MP Wilberforce Ondo has strongly criticised the disciplinary measures issued to State Department staff for irrigation, calling them unfair and insensitive.
“We encourage staff to withdraw this memo. It is inhumane, unfair and completely unreasonable. These employees did not charge housing collection, higher SHA and NSSF rates, or cost of living that forced them to financing more expensive,” Owned said.
He further questioned the logic behind punishing employees who are already struggling under financial constraints.
“What kind of disciplinary action are you trying to take? Do you want to fire him? Do you expect to offset your loan and sell your property just to make your salary compliant? This is simply unfair and inhumane,” he said.
