Treasury Explains Plans to Reduce PAYE After Uproar

Pressure has been mounting on the government to deliver its promise on adjusting the PAYE bands, as many Kenyans continue to face financial strain owing to the many deductions on their salaries...

✨ Key Highlights

The National Treasury has explained why Pay As You Earn (PAYE) relief was not included in the Finance Bill 2026, citing a broader tax reform strategy.

The strategy aims to widen the tax base by targeting under-taxed sectors rather than solely relying on salaried employees.
Key figures involved include the National Treasury and former Law Society of Kenya (LSK) President Faith Odhiambo.
Despite earlier promises from President William Ruto and Treasury Cabinet Secretary John Mbadi regarding PAYE reductions, the bill did not contain these measures, prompting criticism.

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