The Central Organization of Trade Unions (COTU) Kenya has opposed plans by government to monitor individual mobile money transactions as part of its strategy to enhance tax collection.
In a statement, COTU (K) has advised President William Ruto not to hurt Kenyans in his mission to collect enough taxes.
The government in its 2023 Budget Policy Statement, plans to have access to and or investigate mobile money transactions for individuals.
COTU says the move is ill-advised and counterproductive.
According to COTU, majority of users of mobile banking are hustlers and the poor who overwhelmingly voted for this government.
“This move will ultimately make Kenyans avoid using mobile money platforms and as a result, destroy a great innovation that has since helped ease the movement of money, especially from the urban to rural areas”.
“The resolve by the government to snoop on mobile money transactions will have a similar effect to the move by the US government, in the 1920s, through the 1920 Volstead Act, to prohibit the manufacture and sale of alcohol in an attempt to make America more peaceful” the statement reads.
Also Read: Atwoli Calls for Crack Down on ‘Rogue’ Private Security Firms
Monitoring transactions will make Kenyans shun mobile money
The trade unions body says if implemented, the move will force Kenyans to start avoiding the use of mobile money platforms and, maybe, start using other platforms to send money like courier and parcel services.
Instead, COTU (K) wants the government to crack down on outsourcing companies whilst formalizing many jobs in the informal sector.
“Rather than monitoring and investigating MPESA transactions, the government should ensure that the more than the 5,000 outsourcing companies regularize the employment terms and conditions of work for their employees by ensuring that they pay all the statutory deductions including PAYE, NSSF, and NHIF among others,” said COTU.
For instance, most private security firms and many outsourcing companies in the agricultural, service, manufacturing, hospitality, education, transport, construction, financial, and other key sectors of our economy, don’t pay ANY taxes to the government despite employing millions of Kenyans.
COTU wants the government should work with other partners in the labour sector and ensure the formalization of many jobs in the informal sector to ensure the government gets its fair share of the revenue.
“It is possible to collect taxes even from mama mboga if the government becomes innovative and uses incentives”.
“We would like to invite the National Treasury, and by extension KRA, to think innovatively and creatively. The world of work is changing, and we cannot continue adopting simplistic measures such as snooping on mobile money transactions to raise taxes for the government”. said COTU.
