Kenya Details Economic Initiatives Including PAYE Cut Proposal, Carbon Registry, and Projected Oil Earnings - February 2026
The Kenya Bankers Association (KBA) has urged the government to implement a 5% reduction in Pay As You Earn (PAYE) taxes across all income brackets. This move is projected to save salaried Kenyans approximately Sh28 billion, boosting disposable incomes. In a separate initiative, Kenya is launching a National Carbon Registry to bolster its climate finance infrastructure. The new system aims to provide a transparent and verifiable platform for tracking carbon credits and enhancing participation in global carbon markets. Furthermore, The National Treasury projects Kenya could earn between Sh136 billion and Sh371 billion from proposed oil development in Blocks T6 and T7. Cabinet Secretary for the National Treasury, John Mbadi, assured lawmakers the development would not create public debt for the government.
