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Originally published by Kenyans
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February 24, 2026
3h ago

Govt Issues New Conditions for PAYE, VAT, and Income Tax Reduction

Govt Issues New Conditions for PAYE, VAT, and Income Tax Reduction

Kenyans could likely be forced to wait longer before they can reap the effects of the proposed reduction if the conditions are not met...

✨ Key Highlights

Kenya's Treasury has announced new conditions for planned reductions in PAYE, VAT, and income tax, emphasizing that tax rate cuts are contingent on expanding the tax base and improving revenue collection.

  • Tax reductions will only be implemented if the tax base is expanded and revenue collection coverage improves first.
  • Treasury Principal Secretary Chris Kiptoo presented these conditions to the National Assembly's Departmental Committee on Finance and National Planning.
  • The government is considering lowering the PAYE rate for those earning up to Ksh50,000 per month from 30% to 25%.

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