Mbadi sets timeline for PAYE relief as Treasury weighs tax cuts
Treasury Cabinet Secretary John Mbadi has said the government will table proposed changes to Pay As You Earn (PAYE) in Parliament by the end of September 2026 as it seeks to reduce the tax burden on salaried workers. Mbadi said on Tuesday, August 11, 2026, that Treasury was still collecting views from Kenyans and stakeholders […]
Kenya's Treasury Cabinet Secretary John Mbadi announced that the government plans to introduce reforms to the Pay As You Earn (PAYE) system in Parliament by the end of September 2026. This move aims to alleviate the tax burden on salaried workers, especially those with lower incomes, amid concerns about shrinking take-home pay. Mbadi revealed that Treasury is still gathering feedback from Kenyans and stakeholders before finalizing the Income Tax Amendment Bill, which he intends to present to Parliament.
He stated that he has approximately one month to complete public participation and draft the tax laws amendment bill, which should be ready by the end of September. The proposed PAYE reforms target relief for workers earning up to Ksh30,000 and Ksh50,000 per month. However, the government received alternative suggestions from stakeholders, which will be considered alongside the initial proposals.
These changes, including raising the tax-free PAYE threshold from Ksh24,000 to Ksh30,000 and lowering the PAYE rate for income between Ksh30,000 and Ksh50,000, could impact the revenue collected by the Kenya Revenue Authority.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
