Employers oppose new taxes in finance bill 2026

The Federation of Kenya Employers has opposed tax measures in the 2026 Finance Bill, citing heavy burdens on workers and businesses. FKE plans to submit an official objection on Monday.

The Federation of Kenya Employers (FKE) has opposed proposed tax measures in the 2026 Finance Bill. FKE Chief Executive Officer Jacquline Mugo said on Thursday that workers face multiple statutory deductions that shrink their pay and raise business costs.

Mugo announced that FKE will file an official objection to the bill on Monday before the National Assembly's Finance Committee. She called on the government to reduce high statutory deductions on employee payrolls.

The group also protested provisions allowing the Kenya Revenue Authority access to private data, describing it as a breach of privacy. The bill aims to improve tax compliance by granting KRA such powers.

This comes after earlier government promises to raise the tax-free income threshold for those earning below Ksh30,000, a proposal still under consideration according to Treasury Cabinet Secretary Mbadi.

Makala yanayohusiana

Treasury Cabinet Secretary John Mbadi reviewing PAYE tax relief documents in a government office
Picha iliyoundwa na AI

Mbadi: PAYE tax relief proposal still under active consideration

Imeripotiwa na AI Picha iliyoundwa na AI

Treasury Cabinet Secretary John Mbadi has confirmed that the government’s earlier proposal to raise the PAYE tax-free threshold from KSh 24,000 to KSh 30,000 remains under consideration, despite its absence from the draft Finance Bill 2026.

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.

Imeripotiwa na AI

Kenya's National Assembly has called for public submissions on the Finance Bill 2026, which proposes new taxes on mobile phones, imported second-hand clothes and digital assets.

President William Ruto has defended plans for higher National Social Security Fund contributions, stating that employees and employers will each pay 6 per cent of monthly wages. His comments follow a Court of Appeal ruling that upheld the unconstitutionality of the NSSF Act, 2013.

Imeripotiwa na AI

Teachers across Kenya are seeking clarification from the Teachers Service Commission after noticing higher Pay As You Earn deductions in their June payslips.

Mitumba traders have proposed a five per cent presumptive tax on imported second-hand clothes during public participation on the Finance Bill 2026.

Imeripotiwa na AI

The Kenya Revenue Authority has set an 8 per cent interest rate for fringe benefits and deemed interest calculations from July through September 2026.

Jumanne, 30. Mwezi wa sita 2026, 01:45:20

FKE directs employers to implement new minimum wages

Jumatatu, 22. Mwezi wa sita 2026, 21:44:05

Manyatta MP proposes two-thirds quorum for Finance Bills

Alhamisi, 18. Mwezi wa sita 2026, 08:51:55

National Assembly passes Finance Bill 2026

Jumamosi, 13. Mwezi wa sita 2026, 10:43:41

KRA seeks power to freeze employer assets in pension remittance crackdown

Alhamisi, 11. Mwezi wa sita 2026, 09:23:29

Treasury reassures public on PAYE tax relief despite absence from budget

Jumatano, 27. Mwezi wa tano 2026, 09:59:29

Gen Z youth discuss 2026 finance bill online

Jumatano, 20. Mwezi wa tano 2026, 11:37:22

KRA defends proposal to shift tax filing deadline to April

Jumatatu, 11. Mwezi wa tano 2026, 01:08:08

President Ruto signs three bills to boost investment and tax reforms

Alhamisi, 7. Mwezi wa tano 2026, 20:28:29

Finance bill 2026 proposes new taxes on mitumba and mobile phones

Alhamisi, 23. Mwezi wa nne 2026, 23:02:30

KRA begins sending tax compliance notices to businesses ahead of April 30

 

 

 

Tovuti hii inatumia vidakuzi

Tunatumia vidakuzi kwa uchambuzi ili kuboresha tovuti yetu. Soma sera ya faragha yetu kwa maelezo zaidi.
Kataa