Report Shows Ksh525 Billion Govt Debt; PAYE Changes and Water Allocation Rules Proposed - December 2025

A recent report by the Office of the Controller of Budget has revealed that the Kenyan national government's pending bills reached Ksh525.44 billion by September 2025, with state corporations accounting for the vast majority of this debt. Separately, the Kenya Bankers Association has proposed significant changes to the Pay As You Earn (PAYE) tax bands in a submission to the National Treasury, aiming to increase the minimum taxable income and boost disposable income. In another development, the Government of Kenya, through the Water Resources Authority (WRA), has invited public participation for its Draft Water Allocation Guidelines and Allocation Thresholds 2025 to ensure equitable and sustainable water use.