Unemployment Insurance Bill 2022: Employed Kenyans to Face Further Payslip Deductions
Employed Kenyans may soon have to contend with reduced net salaries if a proposal by Ikolomani MP Bernard Shinali is approved. The legislative proposal seeks to establish a mandatory Unemployment Insurance Fund (UIF), requiring employees to contribute 1% of their gross salaries, matched by an equivalent contribution from their employers.
The initiative also includes the creation of the Unemployment Insurance Authority, tasked with managing the fund and providing policy advice to the relevant Cabinet Secretary. The proposed authority’s governance will feature a board led by a chairperson and nine members.
Explaining the rationale behind the bill, Shinali emphasized the need to provide financial relief to individuals who lose their jobs. “The objective of the legislative proposal is to provide for the payment of unemployment benefits to employees who become unemployed,” a segment of the bill states.
Support for the proposal has come from Mosop MP Abraham Kirwa, who highlighted the fund’s potential to protect employees during tough times. Speaking to TUKO.co.ke, Kirwa described the fund as a necessary safety net for the workforce. “I support this bill in its totality. This will help several employees who may become unemployed due to different circumstances. This insurance is a true cushion for employees. Several developed countries have this benefit for all their employees,” he remarked.
Despite the political backing, the proposal has sparked widespread criticism on social media. Many Kenyans voiced concerns about additional deductions on already strained incomes, with some sarcastically commenting on the growing list of government-imposed levies.
“The government is working overtime to ensure we have nothing left by the end of the month,” one Twitter user lamented. Another quipped, “At this rate, can we get a salary to take home or should we just work for deductions?”
The debate surrounding the UIF proposal highlights the delicate balance between introducing social safety nets and addressing the financial strain many Kenyans face amid rising costs of living.
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Unemployment Insurance Bill 2022: Employed Kenyans to Face Further Payslip Deductions
