Days after former Deputy President Rigathi Gachagua launched a counter-offensive against President William Ruto’s administration over taxation policy, Treasury Cabinet Secretary John Mbadi has revealed new plans to water down his onslaught.

Speaking to a local radio station on Monday, February 3, 2025, CS Mbadi explained that the government was exploring new ways of reducing taxes and increasing money into people’s pockets.

Mbadi made it clear that the Treasury, the Cabinet and the entire government were in active conversation about finding a way to mitigate the effects of the taxman deductions.

“There are steps that the government has taken and there are steps that the Cabinet has taken. Before December, Kenyans were earning a little bit more less.

“We took steps to mitigate that and whether that is enough, is a matter of discussion. We committed that we would put more money into the pockets of people and that is not the end of it, we are still studying the economy,” Mbadi told the local radio station.

He acknowledged that those opposing Ruto’s government were slowly building a narrative that people were being overtaxed. He specifically mentioned Gachagua who in recent days had been vocal about rescuing the payslip.

However, CS Mbadi lamented that the arguments on people being over-taxed were not backed by data.

Moreover, he defended Ruto’s administration highlighting the budget deficit shocker that hit them after assuming power in 2022.

“Even yesterday, the former Deputy President said that he would make payslips better because salary people are hurting…but this administration came into office at very difficult times when the deficit to GDP ratio was Ksh925 billion and a budget deficit of almost 8 per cent to the GDP,” Mbadi stated.

“If we can put more money into people’s pockets beyond Uhuru’s regime, the better for this economy. The job is not yet done but this talks out there that Kenyans are so overtaxed is not backed by data,” he added.

Gachagua’s stance

Mbadi’s explanation came amid the rising political heat with Gachagua slowly crafting his niche on his attacks to the government.

Over a couple of weeks, the former DP coined a narrative ‘rescuing the payslip’ making it synonymous with his constant criticism of the government of the day.

“We want to rescue the payslip because the payslip iliguzwa na iko shida mingi sana. (We want) to restore the dignity of the payslip so that the people are able to do their things,” Gachagua said during a TikTok live session.

He referred to the Tax Amendment Act and the Tax Procedures Act which took effect on December 27, 2024. Among the most notable changes in the Act was the doubling of National Social Security Fund (NSSF) contributions for workers earning above Ksh36,000, from Ksh2,160 to Ksh4,320.

“For our young people, those who are talented and in the online space, we are going to have a conversation with our young people so that they can tell me what they think we can do and what we can put in place so that their lives may be better,” the former deputy president affirmed.

“They can earn money, they can be able to communicate, they can be able to be heard, their talents can be acknowledged and everybody can know who has the power to do what…that is what I’m planning but most important is to engage with the young people.”