Bankers Push Govt for Changes to PAYE With Huge Benefits for Employees
Under the proposal, a Kenyan earning Ksh50,000 per month takes home approximately Ksh42,617 after tax, once the applicable bands and personal relief are factored in...
✨ 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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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.
