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.