[Kenya] Employees earning up to Ksh30K gain tax relief

In Kenya, John Mbadi, Cabinet Secretary for the National Treasury and Economic Planning, announced government plans to halt PAYE taxation on the salaries of employees earning below Ksh 30,000 per month, The Kenya Times reports.

Speaking at the Privatization and Budget People’s Dialogue in Meru, Mr Mbadi said the proposal is intended to lessen the financial burden on low-income earners who have borne the brunt of rising taxes, statutory deductions and persistent inflation as the national debt eases.

The Cabinet Secretary reportedly stated that many low-income earners spend most of their salaries on essentials such as food, rent, transport and school fees, leaving them with little or nothing to save.

Mr Mbadi said the idea for the tax relief was brought to him by President William Ruto, who asked that the amendment be taken to parliament for approval.

He added that the government is reviewing the current income tax system to make it fairer.

Mr Mbadi stated that recent tax measures and statutory deductions have reduced the net pay of many workers, especially those in lower income brackets.

“Anyone earning below Ksh30,000 in Kenya should not pay PAYE. It is just not fair. I earn a million shillings, let the government come for me and my fellow members of parliament,” he said.

Removing PAYE for low earners will help restore purchasing power and allow families to spend more on basic goods and services, according to the Treasury.

Mr Mbadi said that 3,065,165 Kenyans are currently salaried. Of this total, 1.5 million reportedly earn Ksh30,000 or less, a very small amount to tax.

Source: The Kenya Times

(Quote via original reporting)

In Kenya, John Mbadi, Cabinet Secretary for the National Treasury and Economic Planning, announced government plans to halt PAYE taxation on the salaries of employees earning below Ksh 30,000 per month, The Kenya Times reports.

Speaking at the Privatization and Budget People’s Dialogue in Meru, Mr Mbadi said the proposal is intended to lessen the financial burden on low-income earners who have borne the brunt of rising taxes, statutory deductions and persistent inflation as the national debt eases.

The Cabinet Secretary reportedly stated that many low-income earners spend most of their salaries on essentials such as food, rent, transport and school fees, leaving them with little or nothing to save.

Mr Mbadi said the idea for the tax relief was brought to him by President William Ruto, who asked that the amendment be taken to parliament for approval.

He added that the government is reviewing the current income tax system to make it fairer.

Mr Mbadi stated that recent tax measures and statutory deductions have reduced the net pay of many workers, especially those in lower income brackets.

“Anyone earning below Ksh30,000 in Kenya should not pay PAYE. It is just not fair. I earn a million shillings, let the government come for me and my fellow members of parliament,” he said.

Removing PAYE for low earners will help restore purchasing power and allow families to spend more on basic goods and services, according to the Treasury.

Mr Mbadi said that 3,065,165 Kenyans are currently salaried. Of this total, 1.5 million reportedly earn Ksh30,000 or less, a very small amount to tax.

Source: The Kenya Times

(Quote via original reporting)