Hello and welcome to today’s edition of The Business Roundup with Daisy. This week, the spotlight is on three major government decisions that could affect workers’ take-home pay, the future of affordable housing, and how millions of Nairobi residents commute.
From a proposed PAYE tax relief plan and a landmark public transport project to fresh clarification on billions of shillings in Boma Yangu transactions, we unpack the developments driving the conversation.
In this edition, we focus on these three leading stories:
- What Next for Workers After Mbadi’s PAYE Tax Cut Plan
- Sakaja Approves Nairobi’s Landmark Underground Rail Project
- Government Clarifies Boma Yangu Refund Data After KSh2.56 Billion Withdrawal Claims
Major This Week
What Next for Workers After Mbadi’s PAYE Tax Cut Plan
National Treasury Cabinet Secretary John Mbadi has outlined the next steps in the government’s plan to reduce the Pay As You Earn (PAYE) tax burden on workers, saying the proposals will undergo nationwide public participation before being presented to Parliament.
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Speaking during the FY2027/28 Medium-Term Budget Preparation Process at the Kenyatta International Convention Centre (KICC) on July 22, Mbadi said the Treasury will spend August collecting views from Kenyans before submitting a report to President William Ruto.
“I know there has been a lot of concern about payslips. Next month, I will embark on a nationwide public engagement on how to reduce the tax burden on workers’ payslips,” Mbadi said.
Mbadi dismissed claims that the proposal had been abandoned, saying the government was still committed to implementing tax relief for workers.
“Some of you thought we had shelved that idea, but we have not. Throughout the month of August, we will conduct public participation because we have developed a proposal, and other stakeholders have also submitted their own proposals,” he said.
Among the Treasury’s proposals is exempting the first KSh30,000 earned every month from PAYE while reducing the tax burden on the next KSh20,000 of taxable income.
Mbadi added that other stakeholders have proposed a five per cent PAYE reduction across all income bands.
“Our proposal is to make the first KSh30,000 tax-free and reduce the tax burden on the next KSh20,000. Other stakeholders have proposed a five per cent tax reduction across the board. We want to consolidate all these proposals and present them to Kenyans for their views,” he said.
Nairobi’s Landmark Underground Rail Project
In other news, Nairobi’s County Executive Committee has approved the implementation framework for Phase I of the Nairobi Metropolitan Mass Rapid Transit System (NMRTS), paving the way for construction of the city’s flagship mass transit network.
Phase I will feature an underground rail line through the Central Business District (CBD) and the Eastlands Line, with the project designed to reduce travel times, ease congestion and improve connectivity between Eastlands and the CBD.
“Today, we are moving from planning to implementation. The approval of Phase I of the NMRTS is our commitment to delivering a modern, fast, safe and dignified public transport system,” Governor Johnson Sakaja said.
The county says the project will include integrated transit terminals linking rail, pedestrians and non-motorized transport, create thousands of jobs, reduce carbon emissions and later connect with the Bus Rapid Transit (BRT) system. Planning for Phase II, covering Westlands, Ngong Road and Lang’ata, is already underway, with public participation and stakeholder consultations set to precede the official groundbreaking.
Boma Yangu’s Ksh2.56 Billion Refund Clarification
The State Department for Housing and Urban Development has clarified reports claiming that KSh2.56 billion had been withdrawn from the Boma Yangu savings scheme.
According to the department, the reported amount combined different types of transactions, including money transferred from savings accounts to finance affordable housing purchases.
The department explained that Boma Yangu operates through a two-wallet system. Savers first accumulate money in a savings wallet before transferring it to a deposit wallet once they identify an affordable housing unit they intend to purchase.
Also Read: Blow to Ruto as High Court Declares Public Debt Task Force Unconstitutional
If allocated a house, the deposit is transferred to the relevant financier as part of the purchase process. If a saver is unsuccessful in securing a unit, the funds remain available for future allocation rounds.
Officials said the use of the term “refunds” for all outward transactions created the false impression that thousands of Kenyans were exiting the program.
According to the State Department, KSh1.76 billion of the reported amount represented deposits used to purchase affordable housing units, while actual cash withdrawals totaled KSh803.3 million.
The department added that cumulative savings on the platform have grown from KSh2.47 billion during the May 2025 audit period to KSh5.47 billion by June 30, 2026. Registered users have also increased from 1.02 million to 1.26 million, with about 30 percent actively saving toward home ownership at any given time.
ALSO, BIG THIS WEEK
- Dubai has launched a new city ambassador program targeting residents, including the Kenyan community, by rewarding them for inviting family and friends to experience the destination.
- Hustler Fund borrowers to clear outstanding loans using Safaricom Bonga Points as government introduces a new repayment option.
- Under the new Teachers Service Commission (TSC) salary structure, teachers’ monthly salaries have increased by between KSh693 and KSh2,055 depending on job grade. The revised salaries took effect on July 1, 2026, and are scheduled to be paid in the August payroll.
Also Read: How to Repay Your Hustler Fund Loan Using Safaricom Bonga Points: Step-by-Step Guide
Quote of the Week
As we wrap up this edition of The Business Roundup, this week’s stories show the importance of policies that balance economic growth with the everyday needs of citizens, from taxation and housing to transport infrastructure.
“A budget is more than numbers on a page; it is an embodiment of our values,” ~Barack Obama
