Wednesday, September 16, 2026
  • News
    • Latest News
    • Breaking News
    • Fact Check
    • Investigations
    • Explainers
  • Politics
    • Global Politics
    • Elections
    • Government & Policy
    • Diplomacy
    • Conflicts & Security
    • Political Analysis
  • Business
    • Global Economy
    • Markets
    • Technology
    • Startups
    • Energy
    • Finance
  • World News
    • Americas
    • Asia
    • Asia Pacific
    • Africa
    • Europe
    • Middle East
  • Africa
    • Central Africa
    • East Africa
    • West Africa
    • Southern Africa
  • Health
    • Global Health
    • Public Health
    • Health Policy
    • Medical Research
    • Diseases & Conditions
    • Mental Health
    • Nutrition
    • Climate & Health
    • Health Explainers
  • Sports
    • World Cup 2026
    • Athletics
    • Basketball
    • Boxing
    • Cricket
    • Football
    • Formula 1
    • Golf
    • Rugby
  • Weather
    • Climate Business
    • Climate Change
    • Climate Solutions
    • Living Green
  • Culture
    • Arts
    • Film & TV
    • Food and Recipes
    • Music
    • Lifestyle
    • People
    • Travel
  • Opinion
    • Editorials
    • Letters
  • Behind The Brand
REGISTER
LOGIN
No Result
View All Result
The Kenya Times
  • News
    • Latest News
    • Breaking News
    • Fact Check
    • Investigations
    • Explainers
  • Politics
    • Global Politics
    • Elections
    • Government & Policy
    • Diplomacy
    • Conflicts & Security
    • Political Analysis
  • Business
    • Global Economy
    • Markets
    • Technology
    • Startups
    • Energy
    • Finance
  • World News
    • Americas
    • Asia
    • Asia Pacific
    • Africa
    • Europe
    • Middle East
  • Africa
    • Central Africa
    • East Africa
    • West Africa
    • Southern Africa
  • Health
    • Global Health
    • Public Health
    • Health Policy
    • Medical Research
    • Diseases & Conditions
    • Mental Health
    • Nutrition
    • Climate & Health
    • Health Explainers
  • Sports
    • World Cup 2026
    • Athletics
    • Basketball
    • Boxing
    • Cricket
    • Football
    • Formula 1
    • Golf
    • Rugby
  • Weather
    • Climate Business
    • Climate Change
    • Climate Solutions
    • Living Green
  • Culture
    • Arts
    • Film & TV
    • Food and Recipes
    • Music
    • Lifestyle
    • People
    • Travel
  • Opinion
    • Editorials
    • Letters
  • Behind The Brand
  • News
    • Latest News
    • Breaking News
    • Fact Check
    • Investigations
    • Explainers
  • Politics
    • Global Politics
    • Elections
    • Government & Policy
    • Diplomacy
    • Conflicts & Security
    • Political Analysis
  • Business
    • Global Economy
    • Markets
    • Technology
    • Startups
    • Energy
    • Finance
  • World News
    • Americas
    • Asia
    • Asia Pacific
    • Africa
    • Europe
    • Middle East
  • Africa
    • Central Africa
    • East Africa
    • West Africa
    • Southern Africa
  • Health
    • Global Health
    • Public Health
    • Health Policy
    • Medical Research
    • Diseases & Conditions
    • Mental Health
    • Nutrition
    • Climate & Health
    • Health Explainers
  • Sports
    • World Cup 2026
    • Athletics
    • Basketball
    • Boxing
    • Cricket
    • Football
    • Formula 1
    • Golf
    • Rugby
  • Weather
    • Climate Business
    • Climate Change
    • Climate Solutions
    • Living Green
  • Culture
    • Arts
    • Film & TV
    • Food and Recipes
    • Music
    • Lifestyle
    • People
    • Travel
  • Opinion
    • Editorials
    • Letters
  • Behind The Brand
No Result
View All Result
The Kenya Times ~ Trending, Breaking News and Videos
No Result
View All Result
ADVERTISEMENT

Mbadi Outlines Next Steps for PAYE Tax Relief Plan for Kenyan Workers

Annah Nanjala WekesabyAnnah Nanjala Wekesa
July 22, 2026
Reading Time: 4 mins read
Kenya Plans To Borrow Ksh1.3 Trillion As 2027/28 Budget Hits Record Ksh5.3 Trillion

President William Ruto with Treasury CS John Mbadi during the Ministerial Performance Contract Signing at State House on November 19, 2024.PHOTO/Treasury X.

FacebookTwitterLinkedInRedditWhatsApp
Advertisement

National Treasury Cabinet Secretary John Mbadi has outlined the next steps in the government’s plan to ease the Pay As You Earn (PAYE) tax burden on low-income workers, saying nationwide public participation will be conducted before the proposed changes are taken to Parliament.

Speaking during the FY2027/28 Medium-Term Budget Preparation Process at the Kenyatta International Convention Centre (KICC) on Tuesday, July 22, Mbadi said the Treasury would spend the month of August collecting views from Kenyans on proposals aimed at reducing PAYE deductions from workers’ salaries.

Mbadi Confirms PAYE Tax Relief Bill to Be Tabled in September 

He said the public consultations would culminate in a report to President William Ruto before legislation is introduced in Parliament.

The Cabinet Secretary said the government had not abandoned its earlier proposal despite speculation that the plan had been shelved.

“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.

“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.”

Mbadi said one of the Treasury’s proposals is to exempt the first KSh30,000 earned every month from PAYE.

He said the government is also considering reducing the tax burden on the next KSh20,000 of their income (between KSh30,001 and KSh50,000) would be taxed at a lower rate than the current system.

ADVERTISEMENT

According to Mbadi, other stakeholders have submitted alternative proposals, including a five per cent reduction in PAYE across all income bands.

Mbadi stated that all the proposals submitted by various stakeholders will be subjected to rigorous public participation before a final decision is reached.

“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.


Also Read: Ruto Reveals Why He Picked Mbadi for Treasury Job


Public Participation to be Held in August

The Treasury will collect views from workers, employers, professional bodies and other stakeholders before settling on the final proposal.

Mbadi said the consultations would be completed by the end of August.

ADVERTISEMENT

“By the end of August, I will have travelled across the country to collect public feedback. We have agreed with the President that once I submit the report, we will introduce the necessary legislation in September so that Kenyans can begin to enjoy some relief on their payslips,” he said.

The proposal comes after the Treasury left out the promised relief for salaried workers in the Finance Bill 2026, even as employees continue to face rising statutory deductions and pressure on household incomes.

The push for tax relief comes as salaried workers grapple with increased deductions from the Social Health Insurance Fund (SHIF), the Affordable Housing Levy and higher National Social Security Fund (NSSF) contributions, which have further widened the gap between gross and net pay.

PAYE Relief Proposal Tests Government’s Revenue Balancing Act

Parliament’s Finance and National Planning Committee Chairperson Kuria Kimani told stakeholders that Treasury simulations showed raising the minimum taxable income threshold from KSh24,000 to KSh30,000 would result in a KSh35 billion revenue shortfall.

The projection highlights the challenge facing the government as it weighs calls for lower taxes against concerns over declining revenue and fiscal pressures.


Also Read: Treasury Reveals Key Dates for 2027/28 Budget, Finance Bill and Public Hearings


The proposals for PAYE cut were shelved, with officials citing revenue constraints, including reduced fuel VAT collections following tax cuts on petroleum products amid the Iran conflict.

If approved by Parliament, the proposed changes would ease the PAYE burden for thousands of low-income workers, especially those earning below KSh30,000 per month.

The measures are part of broader tax reforms aimed at increasing workers’ disposable income while ensuring the government maintains revenue needed to fund public programmes.

Follow our WhatsApp Channel and X Account for real-time news updates.

Mbadi Confirms Paye Tax Relief Bill To Be Tabled In September After August Public Participation
Treasury CS Mbadi During the KPC IPO Results Announcement. PHOTO/KPC
Tags: CS John MbadiPAYE
Annah Nanjala Wekesa

Annah Nanjala Wekesa

Annah Nanjala Wekesa is a journalist at The Kenya Times, with a passion for crafting news-worthy stories that leave a lasting impact. She holds a Bachelor of Arts in Communication and Media from Kisii University. She has honed her skills in the art of storytelling and journalism. Her passion lies in the art of storytelling that resonates with audiences, driving a commitment to delivering news-worthy stories through the lens of integrity and precision. She can be reached at [email protected]

Related Posts

Mbadi Gives New October-November Timeline For Paye Tax Band Review

Mbadi Gives Fresh Timeline for PAYE Changes After September Promise

September 16, 2026
Nema Seeks Public Input On Nairobi Mega Project Featuring 10,000-Seat Arena, 140-Key Hotel

New Nairobi Project to Feature 10,000-Seat Indoor Arena, 140-Key Hotel and Serviced Apartments

September 16, 2026
Woman Busted Smuggling Pliers In Food To Tiktok Rape Suspects In Police Cells

Woman Busted Smuggling Pliers in Food to Suspects Planning Jailbreak

September 16, 2026
Monica Waithera Chege Dies: Wakalucy Fish Palace Owner, Family And Branch Locations

Renowned Entrepreneur Behind Nairobi-Based Restaurant Chain Wakalucy Fish Palace Dies

September 16, 2026

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

ADVERTISEMENT

The Kenya Times Facebook

LATEST NEWS

  • Mbadi Gives Fresh Timeline for PAYE Changes After September Promise
  • Sharon’s Mother Reveals What She Wants From Court in Obado Sentencing
  • Nairobi County to Review Development and Zoning Across Nairobi’s Affluent Neighbourhoods
  • Fred Matiang’i Tops Gusii Politics as Undisputed Kingpin
  • New Nairobi Project to Feature 10,000-Seat Indoor Arena, 140-Key Hotel and Serviced Apartments
  • Woman Busted Smuggling Pliers in Food to Suspects Planning Jailbreak
  • Diana Daisy: Kenyan YouTuber and Most Adventurous Travel Creator Documenting the World’s Hidden Corners
  • Dangote IPO Open: How Kenyans Can Buy Shares Through Mobile Phone
  • Ex-DCI Boss Goes Public About Son’s Sudden Death
  • Nairobi Under Heavy Attack From Section of UK Media After Beating London
  • Renowned Entrepreneur Behind Nairobi-Based Restaurant Chain Wakalucy Fish Palace Dies
  • Family Of Woman Who Delivered Five Babies Narrates Events Before Four Newborns Died
  • Mombasa County Rolls Out 3,000 Jobs: Qualifications, How to Apply and Deadline
  • Nairobi Opens Eastleigh Land to Private Investor for Multimillion-Shilling Project
  • How Faking a Disability Cost a Former Government Employee KSh14.9 Million
ADVERTISEMENT

Company

About Us

Our Authors

Our Experts

Social Media

Policies

Privacy Policy

House Rules

Standards and Policies

Terms and Conditions

Subscription

My Account

Contact Us

Contact Us

Join Our Team

Advertise With Us

© Copyright 2026 | The Kenya Times | All Rights Reserved

Welcome Back!

Sign In with Facebook
Sign In with Google
Sign In with Linked In
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Facebook
Sign Up with Google
Sign Up with Linked In
OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Your Privacy and Cookies
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT
LOGIN | REGISTER
  • Login
  • Sign Up
  • Cart
No Result
View All Result
  • News
    • Latest News
    • Breaking News
    • Investigations
    • Explainers
    • Fact Check
  • Politics
    • Global Politics
    • Conflicts & Security
    • Elections
    • Diplomacy
    • Government & Policy
    • Political Analysis
  • Business
    • Global Economy
    • Markets
    • Technology
    • Startups
    • Energy
    • Finance
  • World News
    • Americas
    • Asia
    • Asia Pacific
    • Africa
    • Europe
    • Middle East
  • Africa
    • East Africa
    • West Africa
    • Southern Africa
    • Central Africa
  • Health
    • Global Health
    • Public Health
    • Health Policy
    • Medical Research
    • Diseases & Conditions
    • Mental Health
    • Nutrition
    • Climate & Health
    • Health Explainers
  • Sports
    • World Cup 2026
    • Athletics
    • Basketball
    • Boxing
    • Cricket
    • Football
    • Formula 1
    • Golf
    • Rugby
  • Weather
    • Climate Business
    • Climate Change
    • Climate Solutions
    • Living Green
  • Culture
    • Arts
    • Film & TV
    • Food and Recipes
    • Lifestyle
    • Music
    • People
    • Travel
  • Opinion
    • Editorials
    • Letters
  • Behind The Brand
  • Contact Us

Not enough quota to unlock this post
Unlock left : 0
Are you sure want to cancel subscription?