CS Mbadi Gives New Update on PAYE Reduction

Jukwaa

🇰🇪 Breaking It Down

Speaking during an interview on Citizen TV on Wednesday night, Mbadi said work on the proposed PAYE review would begin immediately, insisting the government was determined to fulfil President William Ruto's pledge to ease the tax burden on workers.

"The suggestion about PAYE came from the government. That is one of the assignments I am going to start on immediately, on the discussion on how to reduce taxes on PAYE,” Mbadi said.

“We are going to give tax relief, take it to the bank. The President has spoken about it, John Mbadi has spoken about it. It is not that we are enjoying Kenyans; we are going to make sure it is actualised," he added.

📌 What You Need to Know

His remarks come a day after the Finance Act 2026 came into force, with many salaried Kenyans questioning why the promised PAYE reforms were not included in the new tax law.

The government has maintained that the omission does not indicate a policy change but is instead linked to the timing of the legislative process.

Last month, National Assembly Majority Leader Kimani Ichung'wah assured workers that plans to review PAYE were still on course despite not featuring in the Finance Bill 2026.

Ichung'wah explained that the Finance Bill had already been prepared and submitted to Parliament before President Ruto announced plans to restructure PAYE and increase workers' disposable income.

"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," Ichung'wah said at the time.

President Ruto had earlier directed the Treasury to develop proposals that would eliminate PAYE deductions for employees earning up to Ksh30,000 per month, a move expected to benefit thousands of low-income workers.

📰 Source: Kenyans.co.ke

0 0