Ichung’wah Gives Update on Planned PAYE Review for Salaried Kenyans

Jukwaa

🇰🇪 Breaking It Down

Speaking on Thursday night moments after MPs passed the Finance Bill, Ichung’wah said the government was actively working on measures to implement President William Ruto’s pledge to ease the tax burden on workers.

He explained that the proposed PAYE review was not part of the original Finance Bill because the legislation had already been submitted to Parliament long before Ruto 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.

📌 What You Need to Know

“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 added.

Ichung’wah’s remarks come on the back of widespread concerns over the absence of PAYE relief measures in the Finance Bill, despite earlier indications that the government would revise tax bands to increase disposable income for workers.

This follows weeks after Ruto disclosed 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 announced by the Head of State on May 28, 2026, employees earning Ksh30,000 would be relieved of PAYE, up from the previous threshold of 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,” Ruto disclosed.

"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

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