Treasury reassures public on PAYE tax relief despite absence from budget

National Treasury Cabinet Secretary John Mbadi has reassured Kenyans that the proposed PAYE tax relief for low earners remains on track, even though it was omitted from the Finance Bill 2026.

Speaking after presenting the 2026/27 budget in Parliament on Thursday, June 11, Mbadi said the absence from the bill should not be seen as a reversal. He noted that the government is still completing data analysis on the proposal.

"Even if it is not in the Finance Bill, it is not off the table," Mbadi stated. "We have committed. This government is not going to lie. Wait for that commitment."

President William Ruto had earlier directed the Treasury during the National Prayer Breakfast on May 28 to develop plans raising the relief threshold to KSh 30,000 per month from the current KSh 24,000. Mbadi confirmed the pledge will be implemented once the analysis is finalised.

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Treasury Cabinet Secretary John Mbadi reviewing PAYE tax relief documents in a government office
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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.

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