[Kenya] PAYE review will be included in Finance Bill 2026

In Kenya, the National Treasury has made a U-turn on its earlier plan to table a separate Tax Laws (Amendment) Bill ahead of the Finance Bill 2026, Kenyans.co.ke reports.

It has instead opted to merge the proposals into a single legislative process.

In his appearance before the Budget and Appropriations Committee of the National Assembly, Treasury Cabinet Secretary John Mbadi reportedly stated that the decision was informed by the short timeline remaining before the Finance Bill is presented to Parliament.

He added that introducing a separate Bill so close to the Finance Bill would be impractical, prompting the move to consolidate all proposed tax changes. Meaning that the proposals would be part of the Bill. 

“We have turned over this as we have a few weeks to the Finance Bill. So we feel it is too close to bring some tax law adjustments,” Mr Mbadi said.

The measures initially contained in the Tax Laws (Amendment) Bill were projected to raise around Ksh57 billion in revenue. They will now be incorporated into the Finance Bill 2026.

Earlier proposals reportedly indicated that the amendments would introduce a 0 per cent PAYE rate for incomes up to Ksh30,000, with the next Ksh20,000 taxed at 25 per cent.

Source: Kenyans.co.ke

(Quote via original reporting)

In Kenya, the National Treasury has made a U-turn on its earlier plan to table a separate Tax Laws (Amendment) Bill ahead of the Finance Bill 2026, Kenyans.co.ke reports.

It has instead opted to merge the proposals into a single legislative process.

In his appearance before the Budget and Appropriations Committee of the National Assembly, Treasury Cabinet Secretary John Mbadi reportedly stated that the decision was informed by the short timeline remaining before the Finance Bill is presented to Parliament.

He added that introducing a separate Bill so close to the Finance Bill would be impractical, prompting the move to consolidate all proposed tax changes. Meaning that the proposals would be part of the Bill. 

“We have turned over this as we have a few weeks to the Finance Bill. So we feel it is too close to bring some tax law adjustments,” Mr Mbadi said.

The measures initially contained in the Tax Laws (Amendment) Bill were projected to raise around Ksh57 billion in revenue. They will now be incorporated into the Finance Bill 2026.

Earlier proposals reportedly indicated that the amendments would introduce a 0 per cent PAYE rate for incomes up to Ksh30,000, with the next Ksh20,000 taxed at 25 per cent.

Source: Kenyans.co.ke

(Quote via original reporting)