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PAYE Relief Dropped as Parliament Scales Back Finance Bill 2026 Tax Hikes
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Parliament Rejects Plan to Cut Top PAYE Tax Rate, Defers Relief for Workers
Khadija Aden June 18, 2026

Parliament’s Finance and National Planning Committee rejected a move to reduce Kenya’s highest PAYE tax rate despite months of lobbying by banks, accountants, and economists to reduce the tax on workers. The Committee, chaired by Molo MP Kuria Kimani, rejected proposals to cut the top marginal rate from 35 per cent to 28-30 per cent

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Treasury CS John Mbadi during a Town Hall Meeting at the University of Nairobi on May 20, 2026. PHOTO/ Mbadi X.
News
Call Grows for Review of PAYE Tax Bands to Ease Pressure on Kenyan Workers
Juma Nasimiyu Centrine May 21, 2026

Stakeholders have made a strong push for the review of Pay As You Earn (PAYE) tax bands in a bid to rescue Kenyan workers from shrinking paychecks. Speaking when they submitted their proposals on the Bill to the Departmental Committee on Finance and National Planning on May 21, 2026, the Institute of Certified Public Accountants

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