The Kenya Bankers Association (KBA) is urging President William Ruto's government to implement a uniform five percent cut in Pay As You Earn (PAYE) tax across all income brackets. This move aims to boost household spending and economic growth, complementing the government's plan to lower income taxes for low- and middle-income earners.

• The KBA proposes a uniform 5 percent reduction in PAYE rates across all existing tax bands.
• The association welcomed the government's proposal to zero-rate PAYE for workers earning up to Ksh30,000 per month.
• KBA recommends capping the highest PAYE rate at 30 percent, aligning with the National Tax Policy approved in 2023.
• President William Ruto announced plans to table a Tax Amendment Bill to lower PAYE from 30 percent to 25 percent for Kenyans earning up to Ksh50,000.
• This push comes as increasing statutory deductions, especially higher National Social Security Fund contributions, put pressure on workers and employers.