The Law Society of Kenya has urged Parliament to lower Pay As You Earn rates and introduce a tax-free threshold of Ksh30,000 per month in the Finance Bill 2026.
In a memorandum submitted to the National Assembly's Departmental Committee on Finance and National Planning, LSK proposed new income tax bands. The first Ksh30,000 of monthly income would be taxed at 10 per cent, followed by 20 per cent on the next Ksh8,333 and 25 per cent on the next Ksh461,667.
The society also called for check-off contributions to savings and credit cooperative organisations to be treated as non-taxable deductions, similar to pension payments. This change, it argued, would encourage structured savings and broaden financial inclusion.
Tax advisory firms appearing before the committee echoed the call for reform. One firm proposed cutting the top individual rate from 35 per cent to 30 per cent and raising monthly personal relief to Ksh3,000 from Ksh2,400.
Committee Chairman Kuria Kimani noted that the proposals would reduce revenue and asked for detailed computations on their net effect.
