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HomeDaily NewsThursday, December 18, 2025Report Shows Ksh525 Billion Govt Debt; PAYE Changes and Water Allocation Rules Proposed - December 2025
Breaking News & Top Stories3 stories from 1 sources

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.

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Thursday 3:17 PMKenyans

Govt Proposes New Water Allocation Thresholds

Govt Proposes New Water Allocation Thresholds

The Government of Kenya, through the Water Resources Authority (WRA), has invited public participation in shaping the Draft Water Allocation Guidelines and Allocation Thresholds 2025 to ensure equitable and sustainable water use.

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Key Highlights

The Government of Kenya, through the Water Resources Authority (WRA), has invited public participation in shaping the Draft Water Allocation Guidelines and Allocation Thresholds 2025 to ensure equitable and sustainable water use.

  • The new guidelines aim to replace a first-come, first-served system with one prioritizing basic human needs and environmental protection.
  • WRA scheduled public forums between February 9 and 13, 2026, across Kenya's major water regions.
  • Written comments are accepted via email or at WRA offices in Nairobi within 30 days of the notice's publication.
Wednesday 8:01 PMKenyansFirst

Report Exposes Ksh525 Billion Govt Debt

Report Exposes Ksh525 Billion Govt Debt

A recent report by the Office of the Controller of Budget has revealed that the Kenyan national government's pending bills reached a staggering Ksh525.44 billion by September 2025, with state corporations accounting for the vast majority of this debt.

Read Story

Key Highlights

A recent report by the Office of the Controller of Budget has revealed that the Kenyan national government's pending bills reached a staggering Ksh525.44 billion by September 2025, with state corporations accounting for the vast majority of this debt.

  • Total national government pending bills: Ksh525.44 billion by September 2025.
  • State Corporations and SAGAs owe Ksh406.49 billion, representing approximately 77 per cent of the total.
  • Controller of Budget Dr. Margaret Nyakang'o expressed concern over delayed payments threatening the broader economy.
  • Ministries, Departments, and Agencies (MDAs) owe Ksh118.94 billion.
  • Notable debtors include the National Police Service (Ksh13.65 billion) and the Executive Office of the President through the defunct Nairobi Metropolitan Service (NMS) (over Ksh13.6 billion).
Thursday 12:34 PMKenyans

Bankers Push Govt for Changes to PAYE With Huge Benefits for Employees

Bankers Push Govt for Changes to PAYE With Huge Benefits for Employees

The Kenya Bankers Association has proposed significant changes to the Pay As You Earn (PAYE) tax bands, aiming to increase the minimum taxable income and cap the highest tax rate. This proposal, submitted to the National Treasury, seeks to boost disposable income for Kenyans, thereby stimulating the economy.

Read Story

Key Highlights

The Kenya Bankers Association has proposed significant changes to the Pay As You Earn (PAYE) tax bands, aiming to increase the minimum taxable income and cap the highest tax rate. This proposal, submitted to the National Treasury, seeks to boost disposable income for Kenyans, thereby stimulating the economy.

  • The proposal suggests exempting income below Ksh30,000 from PAYE, up from the current Ksh24,000, and capping the highest tax band at 30 per cent.
  • CEO Raimond Molenje highlighted that increasing take-home pay would stimulate spending, strengthen the economy, and improve loan repayment.
  • Under the proposed changes, a Kenyan earning Ksh50,000 would pay Ksh3,000 in tax, an increase of nearly Ksh4,383 in their monthly take-home salary compared to the current system.
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