Finance Bill: MPs reject public push to lower PAYE

Experts want the highest marginal tax rate slashed from 35pc to between 28pc and 30pc...

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Kenyan Members of Parliament have rejected public appeals to lower the highest Pay As You Earn (PAYE) tax rate, opting instead to review other proposed tax measures in the Finance Bill 2026.

MPs shelved proposals to reduce the highest PAYE marginal tax rate from 35 percent to between 28 and 30 percent, despite pressure from financial sector experts.
The National Assembly Finance and National Planning Committee, chaired by Molo MP Kuria Kimani, proposed amendments that would reduce the projected additional revenue from the Bill from Sh120 billion to Sh98.5 billion.
Organizations like the Institute of Certified Public Accountants of Kenya (ICPAK) and the Kenya Bankers Association (KBA) advocated for reforms, including exempting Kenyans earning below Sh30,000 per month from PAYE.

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