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Originally published by Kenyans
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June 18, 2026
2h ago

Inside Proposed New PAYE Tax Changes in Finance Bill 2026

Inside Proposed New PAYE Tax Changes in Finance Bill 2026

The amendments are to affect close to 3.1 million Kenyans who pay their taxes directly to the Kenya Revenue Authority (KRA)..

✨ Key Highlights

New Pay As You Earn (PAYE) tax bands are set for debate in the National Assembly as part of the Finance Bill 2026, with proposed changes aiming to affect millions of Kenyan workers.

  • Proposed new PAYE bands include 10% on income up to Ksh360,000 annually, with rates escalating to 30% for incomes exceeding Ksh9,600,000.
  • Key figures involved include Kathiani MP Robert Mbui, who has tabled amendments targeting Clause 22 of the Bill.
  • The proposed changes to PAYE are scheduled to take effect on January 1, 2027, if passed, and the Bill also includes redefinitions of royalties and gambling winnings.

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