Former Deputy President Rigathi Gachagua has raised fresh political tension after suggesting that the head of the Kenya National Bureau of Statistics (KNBS) could soon face dismissal over the release of disputed economic data.

Speaking during the National Reflections Post Labour Day forum and the launch of the Labour Market and Worker Welfare Report 2026 at Radisson Blu, Nairobi, on Tuesday, May 5, 2026, Gachagua launched a strong critique of the government’s economic direction, taxation policies, and official statistics.

He also cast doubt on the independence of institutions producing economic data, saying pressure was mounting on officials who release figures that contradict the government narrative.

Gachagua said Kenyan workers are under heavy financial strain due to multiple statutory deductions that significantly reduce take-home pay.

“Today, the payslip does not show what you earn. It shows what you cannot afford,” he said.

He listed PAYE, SHIF, NSSF, housing levy and other deductions, saying they take between 30 and 45 per cent of a worker’s gross salary before it reaches their accounts.

He argued that this has weakened household spending power and hurt economic demand.

He also claimed that there were plans to introduce a national infrastructure fund levy, which he said would have pushed deductions close to 50 per cent of gross pay.

“It is a matter that was only stopped by public outcry in the run-up to the elections,” he said, adding that the idea could return after the next election cycle.

The former Deputy President linked the burden on workers to what he described as slowing economic growth.

He said Kenya’s economic growth had dropped from 7.6 per cent in 2021 to 4.6 per cent, blaming policy decisions and reduced purchasing power.

“Numbers do not lie,” he said, dismissing government claims that the economy remains stable.

However, he also noted growing tension within government over official statistics. He said the Kenya National Bureau of Statistics had released figures that contradicted political messaging from senior leaders.

“I am aware William Ruto is disputing these figures released by a department in his own government,” he said.

Gachagua further claimed that pressure was being placed on the leadership of KNBS.

“I have been told that the boss in charge of that department will soon face the sack for telling the people of Kenya the truth,” he said.

The remarks come at a time when debate continues over the accuracy of official economic data following the release of the 2026 Economic Survey, which showed slowing growth but also improvements in nominal GDP and employment numbers.

Rising cost of living and taxation debate

Gachagua said rising fuel prices, inflation, high lending rates and insecurity were adding to economic pressure on households.

He accused the government of ignoring public concerns and continuing to impose new taxes.

He specifically criticised the Affordable Housing Levy, which he said had become a burden for workers.

“Some are calling it the avoidable housing levy,” he said.

He argued that while the government presents the levy as a development tool, workers are not seeing clear returns on their deductions.

According to him, billions of shillings collected from workers have not been properly accounted for, raising concerns about transparency and absorption capacity in the housing programme.

He said the State Department of Housing lacked the capacity to fully utilise the funds being collected.

Gachagua further claimed that large sums collected through statutory deductions were being held in financial institutions instead of being directly used for intended projects.

He suggested that this situation raises questions about financial management and accountability in public projects.

He pointed to rapid growth in deposits in certain financial institutions linked to public sector flows, arguing that this trend required scrutiny.

However, he did not provide documentary evidence for the claims during the speech.

Teachers, police and informal workers

Gachagua also raised concerns about welfare in key public sectors, including teachers and police officers.

He said about 500,000 teachers were struggling to access reliable medical cover under the Social Health Authority system, which he said was affecting morale and performance in schools.

He warned that a demotivated teacher system would have long-term consequences on education quality.

He also questioned who was speaking for police officers, saying their working conditions affected national security and public confidence.

He extended his concerns to informal workers, who he said form the majority of Kenya’s workforce but remain largely excluded from formal protection systems.

He mentioned traders in markets such as Gikomba, Githurai, Kariokor, Kongowea, Huruma and others, saying they are exposed to fire risks, taxation pressure and lack of safety nets.

He also cited digital platform workers who can be deactivated without due process, leaving families without income.

Gachagua said Kenya must rethink its approach to taxation and worker welfare.

He said economic policy should focus on increasing disposable income rather than overtaxing wages.

“Workers before words,” he said, calling for policies that prioritise households over revenue collection.