Kenya's private sector is urging Parliament to approve a 5 per cent reduction in Pay as You Earn (PAYE) taxes as part of the Finance Bill 2026, citing potential economic benefits.

• The proposal aims to cap the maximum PAYE rate at 30 per cent and increase personal tax relief to Sh3,000.
• Key proponents include the Kenya Private Sector Alliance (KEPSA), led by Chairperson Dr. Jas Bedi, and the Kenya Bankers Association (KBA), represented by CEO Raimond Molenje.
• The private sector estimates this measure could inject Sh28.1 billion into the economy, potentially fostering job creation and boosting GDP by Sh210 billion in the first year.