National Fuel Gas board aims to complete review of separation plan by October 15

NAIROBI, Kenya – Treasury Cabinet Secretary John Mbadi announced that the government will commence reviewing PAYE bands for low-income earners in early October, moving the process from its originally scheduled timeframe. The delay is due to his upcoming attendance at the IMF and World Bank Spring Meetings, alongside the necessity for public consultation before implementing the proposed changes.

During a press conference, Mbadi emphasized the importance of public participation, stating, "It is coming. I am going for public participation first. My sister, look at what the court is saying. If I bring them and someone goes to court that I did not do public participation, it will be quashed." He warned that if his actions are deemed insufficient in this regard, any proposed changes may be invalidated.

Mbadi explained that the review will commence in the first week of October, even if it means temporarily stepping away from the Spring Meetings. Once he returns, the government will process the bill, take it to the National Assembly, and engage in further public consultation.

The Treasury proposal entails exempting employees earning Sh30,000 or less from PAYE, while reducing the tax rate for those earning between Sh30,001 and Sh50,000. Mbadi mentioned that the government will also take into account alternative proposals submitted by stakeholders during the public participation process.

The Kenya Bankers Association (KBA) suggested a five percentage point reduction in PAYE rates across all tax bands, with a cap of 30 percent on the highest rate. The association calculates that these changes would result in an additional Sh28.1 billion in disposable income annually for workers, create approximately 36,000 jobs each year, and boost economic output by Sh210 billion.