Treasury Cabinet Secretary John Mbadi reviewing PAYE tax relief documents in a government office
Treasury Cabinet Secretary John Mbadi reviewing PAYE tax relief documents in a government office
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Mbadi: PAYE tax relief proposal still under active consideration

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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.

Mbadi made the clarification during a Finance Bill 2026 briefing on 11 May, reassuring the public that the administration has not abandoned its pledge to provide relief for salaried workers earning below KSh 50,000. A final decision is expected before 30 June, ahead of the bill’s passage.

“Before the public participation process ends, we will make a decision. Before June 30 and before the Finance Bill is passed, the government is likely to propose amendments to align PAYE with our earlier proposal,” Mbadi said.

Simulations indicate the change could create an annual revenue shortfall of about KSh 35 billion. The proposal was missing from the initial draft, raising public concerns that it had been shelved. This follows February statements by Treasury Principal Secretary Chris Kiptoo, who tied any tax cuts—including PAYE reductions—to expansion of the tax base.

Ohun tí àwọn ènìyàn ń sọ

Initial reactions on X show Mbadi directly confirming the PAYE proposal remains active and not dropped. Skeptical users highlighted contradictions with prior promises by Ruto and potential budget shortfalls. Media posts noted possible amendments amid public pressure, with mixed views on relief for low earners versus revenue concerns.

Awọn iroyin ti o ni ibatan

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.

Ti AI ṣe iroyin

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.

The Kenya Revenue Authority (KRA) has released new rules for the 2025 tax filing season on April 3, 2026. Businesses must file returns and settle balances by April 30, 2026, facing penalties for delays. The updates cover business expenses, PAYE, and VAT procedures.

Ti AI ṣe iroyin

The National Treasury has defended proposed changes under the 2026 Finance Bill that would move the main tax filing deadline from June 30 to April 30 and compress nil returns to January 31.

 

 

 

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