CS Mbadi Explains Tax Cuts for Salaried Kenyans Earning Below Ksh50,000
Mbadi was forced to clarify the matter following public criticism after PAYE relief measures were omitted from the Finance Bill 2026, despite earlier expectations...
✨ Key Highlights
The Kenyan government is still considering increasing the tax-free Pay-as-You-Earn (PAYE) income threshold to Ksh 30,000, according to Treasury Cabinet Secretary John Mbadi.
- The proposal aims to raise the tax-free threshold from the current Ksh 24,000.
- Key figure: Treasury Cabinet Secretary John Mbadi confirmed the proposal is under consideration.
- The decision is expected before June 30 and ahead of the Finance Bill 2026 passage, with projections indicating a potential revenue loss of Ksh 35 billion annually.
Continue Reading
Read the complete article from Kenyans
Part of the Day's Coverage
Public Participation Opens for Finance Bill 2026 Tax Proposals - May 2026
The National Assembly has invited public and stakeholder submissions on the proposed Finance Bill 2026, which includes controversial tax proposals affecting mobile phones, digital assets, and imported mitumba goods. President William Ruto assented to three major bills including the Income Tax (Amendment) Bill, aimed at reforming tax policies and fostering investment growth. Treasury CS John Mbadi stated the government is considering increasing the tax-free PAYE income threshold to Ksh 30,000 for salaried Kenyans earning below Ksh 50,000. The KRA has also announced that salaried Kenyans can file their annual income tax returns even without their P9 forms.
