Mbadi Issues Fresh Details on PAYE Deductions After Finance Act 2026
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Treasury CS John Mbadi has announced that the government will immediately begin discussions on reducing PAYE deductions after the Finance Act 2026.
Speaking during an interview on Citizen TV on Wednesday, July 1, 2026, Mbadi said the planned tax relief aims to ease the burden on salaried Kenyans.
“We are going to give tax relief, take it to the bank. We are going to make sure it is actualized,” Mbadi said.
Proposed Tax Relief Models and Public Consultation
Mbadi confirmed that the president had publicly supported the tax relief plans and assured the public of their implementation in the National Assembly as the head of the treasury.
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“The president has spoken about it, I have spoken about it as the head of the Treasury, and we are committed as a government to do this,” he said, indicating that three models are being considered by the Treasury.
These are tax relief for earners up to Ksh 30,000; relief up to Ksh 50,000, and a flat 5% deduction in all PAYE bands, before subjecting them to public discussion.
This comes amid increasing public pressure from Kenyans for relief, as seen in a viewer’s message on Citizen TV’s “Budget and Beyond,” where the viewer suggested Mbadi consider 5% relief across all bands for ‘more money in circulation and treasury’.
Government’s Approach to Taxation and Public Revenue Generation
Mbadi also dismissed views that the government loves to tax Kenyans.
“So, it is not that we are enjoying Kenyans. We are going to make sure it is actualized,” he said. He added that if the promise fails, “we shall replay this video.”
Authorities stated taxation has been a source of controversy for the government since the Finance Bill 2026 debates in Parliament.
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The CS noted Mbadi said the goal of the government is to reduce pressure without harming public revenue generation.
The National Assembly will now be charged with reviewing the proposal before tabling it for amendments, before being considered for possible enactment.
However, it is unclear when the relief might be implemented.
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Cabinet Secretary for the National Treasury and Economic Planning of Kenya says the government originated the PAYE cut proposal to give tax relief up to Ksh 50,000 or a 5% cut
