National Treasury Cabinet Secretary John Mbadi has given a fresh update on the proposed changes to Pay As You Earn (PAYE), saying the government expects to complete the process by the end of September this year.

🇰🇪 Breaking It Down

Speaking during a media briefing on Tuesday, August 11, Mbadi said he will spend the coming month collecting views from Kenyans and other stakeholders before preparing the legislation.

The CS noted that the government had received alternative recommendations to earlier proposals, including input from the banking sector.

“I have a month to do public participation and get people’s opinions. We had suggested between 30,000 and 50,000 but there are other Kenyans, especially the Kenya Bankers Association, who have come up with another suggestion,” he said.

📌 What You Need to Know

Mbadi explained that the different proposals would be considered alongside views gathered during the public participation process before the final position is adopted.

According to the CS, once the process is completed, the proposals will be consolidated into a Tax Amendment Bill that he intends to present to Parliament.

“We want to put them together and then prepare the Tax Laws Amendment Bill, which I will bring to Parliament. Before the end of September, I will be done,” he stated.

Changes to the current PAYE structure will then require consideration and approval by Parliament before they can take effect.

Mbadi’s update comes amid speculation on the changes expected to affect millions of workers, with Kenyans raising concerns that they would not be implemented.

President William Ruto had directed the Treasury to develop measures to reduce deductions on workers’ payslips, with the proposed changes initially expected to be included in the 2026 tax legislation.

📰 Source: Kenyans.co.ke