Kenya Treasury CS Mbadi outlines timeline for PAYE tax relief

National Treasury Cabinet Secretary John Mbadi has announced that the Kenyan government aims to complete the process for revising Pay As You Earn (PAYE) tax structures by the end of September. The initiative follows a directive from President William Ruto to reduce deductions for salaried workers.

Mbadi is currently conducting a public participation period to gather views from stakeholders, including the Kenya Bankers Association, which has submitted alternative recommendations to the initial proposals. The Treasury’s preliminary suggestions included exempting employees earning up to Ksh30,000 from PAYE and reducing the tax rate to 25 per cent for those earning between Ksh30,000 and Ksh50,000.

Once consultations are finalized, the proposals will be consolidated into a Tax Laws Amendment Bill to be presented to Parliament for approval. Mbadi dismissed speculation that the government had abandoned the pledge, asserting that the new legislation will incorporate diverse stakeholder input to provide relief to Kenyans.