Demystifying the Cost of Living: Has President Ruto Really Made Life Harder?

Over the past few years, the phrase “cost of living has skyrocketed” has become a rallying cry across Kenya, particularly among the youth and working class. And while the pain at the pump, the checkout counter, and in rent receipts is real, it's important to dig deeper and separate perception from policy.

One of the most misunderstood fronts in this debate is the monthly payslip. Many believe that under President William Ruto’s administration, more is being taken from their salary than during President Uhuru Kenyatta’s time. To address this, let’s compare payslips side by side — July 2022 (Uhuru’s era) vs July 2025 (Ruto’s era).



💸 Side-by-Side Salary Comparison: 2022 vs 2025

ItemJuly 2022July 2025
Basic Pay100,000100,000
NSSF1,0804,320
NHIF/SHIF1,700 (NHIF)2,750 (SHIF)
Housing Levy01,500
Taxable Pay98,92091,430
Income Tax24,459.3622,212.36
Personal Relief-2,400-2,400
PAYE (After Relief)21,804.3619,812.36
Net Pay75,415.6471,617.64

At face value, it seems the net pay in 2025 is KSh 3,798 less. But let’s unpack what that reduction is paying for — and why it might be a gain, not a loss.

🏥 1. NHIF to SHIF — From Fee-for-Service to Provident Fund

Previously, NHIF was just a monthly health deduction, with many employees questioning the quality of services received. Today’s SHIF (Social Health Insurance Fund) introduces a provident structure — meaning the fund now acts as a long-term social protection buffer.

✅ Better pooling.
✅ Wider coverage.

In short, you're not just paying for treatment — you’re investing in your future healthcare safety net.

🏦 2. NSSF Reform — From Flat Rate to Fair Share

Under the old system, everyone paid a flat KSh 200 to NSSF regardless of income. That was neither fair nor sufficient to sustain anyone in retirement.

Now, NSSF deductions are based on a small percentage of gross income — in this case, KSh 4,320 — and employers match this amount. That means KSh 8,640 is being saved for your retirement each month.

Think about it: in 2022, your retirement pot grew by only KSh 200 per month. In 2025? It grows by over KSh 8,000 monthly.

This is not a loss; it’s an upgrade in dignity after 60.

🏘️ 3. Housing Levy — Sacrifice Today, Asset Tomorrow

The controversial Housing Levy deducts 1.5% of gross salary (here: KSh 1,500). It’s been criticized as a forced saving — but in reality, it’s now part of the National Housing Fund and is being structured to work as loan collateral and a contributory asset.

Whether you plan to own a house through the fund or not, this is not a tax lost to the ether — it is a financial instrument, and in future, contributors will benefit either directly (through homes) or indirectly (via access to credit or rental dividends).

📌 So Has Ruto Made Life Harder?

The answer isn’t black or white.

Yes, your net salary is slightly lower. But the value being generated from deductions is significantly higher. You are:

  • Saving more for retirement.

  • Covered under a broader, matched health fund.

  • Building credit history or housing security via the Housing Levy.

Instead of treating these deductions as losses, it’s time to see them as investments into a more secure future.

💬 After Thought 1: It’s Not Just About Take-Home — It’s About What You Take Forward

President Ruto’s reforms may not always be well communicated, but they reflect a broader philosophy: shared responsibility for long-term resilience. The Gen Z question remains valid — “Where is the money going?” — but some answers, like those in the payslip, are hiding in plain sight.

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