Kenya: Govt Delays Tax Relief for Low-Income Earners Over Sh35bn Revenue Gap

11 May 2026
Capital FM (Nairobi)
By Phidel Kizito

Nairobi — The government has delayed plans to introduce income tax relief for workers earning up to Sh30,000, citing fears of a Sh35 billion revenue shortfall.

National Treasury Cabinet Secretary John Mbadi said the Treasury is still reviewing the impact of the proposal before including it in the Finance Bill.

The proposal, announced earlier by President William Ruto, sought to exempt workers earning up to Sh30,000 from PAYE tax and lower the tax rate for those earning between Sh30,000 and Sh50,000 to 25 percent from the current 30 percent.

Mbadi said the Treasury is assessing whether increased tax collection and spending cuts can offset the projected revenue losses, as pressure grows to ease the burden on workers facing a high cost of living.

Read the original article on Capital FM.

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