Mbadi Confirms New Timeline for PAYE Changes for All Salaried Kenyans
Salaried employees across the country may soon enjoy lighter tax deductions from their payslips following fresh assurances from the Treasury.
Cabinet Secretary John Mbadi has indicated that plans are underway to ease the Pay As You Earn burden on workers. This development comes after earlier promises that did not feature in recent budget measures, raising hopes for meaningful change in the coming months.
The Treasury chief announced that public consultations on various tax relief options will kick off next month. A report summarizing the inputs will be submitted to the President by the end of August, paving the way for proposed legislation to reach Parliament in September 2026. If passed, the adjustments could benefit over 3.4 million employed individuals by reducing the amount of tax withheld from their salaries each month.
Among the ideas under consideration is removing PAYE entirely for those earning up to 30,000 shillings monthly, while lowering the rate to 25 percent for incomes between 30,000 and 50,000 shillings. Other suggestions, such as a flat five percent reduction across all brackets, are also being reviewed through stakeholder engagement. These steps aim to put more money back into the pockets of hardworking citizens facing rising living costs.
The announcement has been welcomed by many who have been waiting for relief after previous commitments. Government officials emphasize that all proposals will undergo thorough discussion to balance taxpayer support with overall economic needs. As September approaches, workers will be watching closely to see how these plans translate into actual changes on their payslips and improved financial well-being.
