LSK pushes for PAYE cuts and Ksh30,000 tax-free salary in 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.

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.

Makala yanayohusiana

Treasury Cabinet Secretary John Mbadi reviewing PAYE tax relief documents in a government office
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Mbadi afafanua serikali bado inazingatia kupunguza ushuru wa PAYE

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Waziri wa Fedha John Mbadi amethibitisha kuwa pendekezo la kuongeza kizingiti cha ushuru wa PAYE kutoka Sh24,000 hadi Sh30,000 bado linazingatiwa. Alitoa ufafanuzi huu wakati wa mkutano wa Mswada wa Fedha 2026 mnamo Mei 11.

Serikali imetoa masharti mapya yanayohitajika kutimiza kabla ya kutekeleza mpango wake wa kupunguza kodi kuu, ikiwa ni pamoja na Pay As You Earn (PAYE), Value Added Tax (VAT), na kodi ya mapato, ili kusawazisha uendelevu wa kifedha na misaada kwa walipa kodi. Mabadiliko haya ya sera yanatokea karibu wiki tatu baada ya ahadi kutoka kwa Rais William Ruto na Waziri wa Mambo ya Hazina John Mbadi kwamba utawala ulikuwa na kujitolea kupunguza kodi kuu ili kupunguza gharama za maisha. Kiptoo alisema kuwa mipango ya kupunguza kodi itategemea upanuzi wa msingi wa kodi.

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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.

Kiharu MP Ndindi Nyoro has urged the National Assembly to amend laws and cut taxes to bring down fuel prices. His proposals follow recent sharp increases announced by EPRA.

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Serikali ya Kenya imependekeza hatua mpya za kodi kwenye nguo za mitumba na simu za mkononi kama sehemu ya Mswada wa Fedha 2026. Waziri wa Fedha John Mbadi aliwasilisha mswada bungeni mwishoni mwa Aprili.

Serikali ya Kenya imepandisha ushuru wa royalty ya muziki kwa kampeni za kisiasa mbele ya uchaguzi wa 2027. Waziri Mkuu Salim Mvurya alitia saini notisi inayosasisha Ushuru wa Consolidated Music and Audiovisual Works. Wagombea wa urais watalipa Ksh500,000, juu kutoka Ksh400,000 awali.

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Mamlaka ya Mapato ya Kenya (KRA) imetangaza kuwa imeweka kiwango cha riba cha soko kwa kodi ya faida za pembeni na kiwango cha riba kinachoonekana kwa 8% kwa kipindi cha Aprili hadi Juni 2026. Tangazo hili lilitolewa tarehe Ijumaa, Aprili 10, na linaanza kutumika mara moja. Washirika wameambiwa kusasisha mifumo yao ili kuepuka adhabu.

 

 

 

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