The Law Society of Kenya (LSK) and tax advisory firms are advocating for significant cuts to Pay As You Earn (PAYE) rates and a higher tax-free salary threshold in the Finance Bill 2026.

• LSK proposes a tax-free monthly salary of Ksh30,000, with tiered rates culminating in a 30 per cent top individual rate.
• Key organizations involved include the Law Society of Kenya and various financial and tax advisory firms.
• A notable proposal is to grant non-taxable deduction status to contributions made to cooperative societies, aligning them with pension tax treatment.