According to a claim circulating on Facebook, Sacco dividends earned in Kenya are now attracting a 15% tax, having risen from a 5% rate previously.
“It’s just pointless to save in this country!” reads one post.
Sacco is an abbreviation for savings and credit co-operative. Saccos are member-owned financial institutions that offer both savings and credit services to their members.
Since assuming office in August 2022, William Ruto’s government has been under pressure to reduce the high cost of living, amid criticism of a proposal to raise taxes and cut costs.
In a bid to cut down on borrowing, the Kenyan government has been ramping up its tax collection, including considering monitoring mobile money transactions. The national treasury also wants to raise the price of excise stamps, also known as sin tax, which will see a rise in prices of excisable goods, such as alcohol and cigarettes.
