[Kenya] Proposed PAYE review on track despite absence from Finance Bill 2026

In Kenya, after concerns about its absence from the 2026 Finance Bill, Majority Leader Kimani Ichung'wah has reassured workers that plans to lower the PAYE tax structure are still on track, Kenyans.co.ke reports.

On June 18, shortly after MPs passed the Finance Bill, Mr Ichung’wah stated that the government was actively working on measures to implement President William Ruto’s pledge to ease the tax burden on workers.

He reportedly clarified that the proposed PAYE review was not part of the original Finance Bill, as the legislation was submitted to Parliament long before the president announced plans to review the tax.

“I want to remind you that the Finance Bill came to the House in April this year, and the President announced himself on the matter on May 27 during the National Prayer Breakfast,” he said.

“I can assure you that the Treasury, the Finance Committee and those of us in the House leadership are working on that. I can assure you that the President cannot make a pronouncement in vain.”

The clarification came in the wake of widespread concerns about the absence of PAYE relief measures in the Finance Bill, despite earlier indications that the government would revise tax bands to increase workers' disposable income.

It has been weeks since President Ruto announced that he had directed the National Treasury to develop proposals to remove PAYE deductions for workers earning up to Ksh30,000 monthly.

Under the proposed changes, employees earning Ksh30,000 would be relieved of PAYE. The threshold previously stood at Ksh24,000.

“I told the Treasury that it is time to look at how we can slow down, especially for the low-income earners, and remove some taxes from them,” the president said.

"That is why we will be putting a proposal before Parliament to say that all the low-income earners, the people who earn up to Ksh24,000, have been paying PAYE at 10 per cent, and we are saying they will not pay anymore."

Source: Kenyans.co.ke

(Quotes via original reporting)

In Kenya, after concerns about its absence from the 2026 Finance Bill, Majority Leader Kimani Ichung'wah has reassured workers that plans to lower the PAYE tax structure are still on track, Kenyans.co.ke reports.

On June 18, shortly after MPs passed the Finance Bill, Mr Ichung’wah stated that the government was actively working on measures to implement President William Ruto’s pledge to ease the tax burden on workers.

He reportedly clarified that the proposed PAYE review was not part of the original Finance Bill, as the legislation was submitted to Parliament long before the president announced plans to review the tax.

“I want to remind you that the Finance Bill came to the House in April this year, and the President announced himself on the matter on May 27 during the National Prayer Breakfast,” he said.

“I can assure you that the Treasury, the Finance Committee and those of us in the House leadership are working on that. I can assure you that the President cannot make a pronouncement in vain.”

The clarification came in the wake of widespread concerns about the absence of PAYE relief measures in the Finance Bill, despite earlier indications that the government would revise tax bands to increase workers' disposable income.

It has been weeks since President Ruto announced that he had directed the National Treasury to develop proposals to remove PAYE deductions for workers earning up to Ksh30,000 monthly.

Under the proposed changes, employees earning Ksh30,000 would be relieved of PAYE. The threshold previously stood at Ksh24,000.

“I told the Treasury that it is time to look at how we can slow down, especially for the low-income earners, and remove some taxes from them,” the president said.

"That is why we will be putting a proposal before Parliament to say that all the low-income earners, the people who earn up to Ksh24,000, have been paying PAYE at 10 per cent, and we are saying they will not pay anymore."

Source: Kenyans.co.ke

(Quotes via original reporting)