The Kenyan National Treasury has announced that planned income tax cuts for low-income earners earning below Sh50,000 are impossible due to revenue concerns. This decision comes after the government reduced Value-Added Tax (VAT) on petroleum products.

• The government faces a potential revenue shortfall of approximately Sh35 billion from the proposed personal income tax (PAYE) reduction.
• The National Treasury Cabinet Secretary John Mbadi cited the war in the Middle East and its impact on fuel prices as a key reason for the backtrack.
• The VAT cut on petroleum products, from 13% to 8% for three months, is expected to result in a revenue loss of about Sh12.9 billion.