Financial experts are criticizing a U-turn by National Treasury Cabinet Secretary John Mbadi on promised Pay As You Earn (PAYE) tax cuts. Initially intended to support low-income earners, the reforms were slated for the Finance Bill 2026.

• The Kenya Bankers Association (KBA), Institute of Certified Public Accountants of Kenya (ICPAK), and Law Society of Kenya (LSK) are advocating for the tax reforms.
• They argue that additional taxes like the Social Health Insurance Fund (SHIF) Levy, Affordable Housing Levy, and increased NSSF deductions are decreasing real wages.
• A 5 percent PAYE cut, as proposed by the KBA, could inject an estimated Sh28.1 billion into the economy annually and create approximately 36,000 new jobs.