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Originally published by The Standard Business
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December 22, 2025
4h ago

Why banks are pushing for lower PAYE

Why banks are pushing for lower PAYE

The Association made the proposals against the National Treasury’s invitation for comments from Kenyans on tax policies to inform the Finance Bill 2026...

✨ Key Highlights

The Kenyan banking industry is advocating for a reduction in pay as you earn (PAYE) tax bands, proposing to increase the minimum taxable income to Sh30,000 from the current Sh24,000.

  • The Kenya Bankers Association (KBA) suggests a maximum PAYE band of 30 percent.
  • This move aims to boost disposable income, empower workers, support Micro, Small, and Medium Enterprises (MSMEs), and ultimately increase government revenue through enhanced consumption and investment.
  • The proposal was put forth by KBA Chief Executive Raimond Molenje.

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