National Treasury Cabinet Secretary John Mbadi has assured Kenyans that the government remains committed to implementing PAYE tax relief for workers earning below Ksh30,000 per month despite the proposal not being included in the Finance Bill 2026.
Speaking shortly after presenting the 2026/27 Budget in Parliament on Thursday, June 11, Mbadi noted that the omission should not be interpreted as the government abandoning the plan.
He explained that the Treasury is still undertaking data analysis and technical assessments before rolling out the proposed tax relief.
Mbadi reassures Kenyans on Ksh30,000 PAYE Tax relief promise. Photo: Courtesy.
The assurance comes amid growing concern among taxpayers following the publication of the Finance Bill, which did not contain provisions to exempt low-income earners from PAYE as previously promised by the government.
Mbadi maintained that the proposal remains under consideration and is expected to be implemented once the necessary evaluations are completed.
He emphasized that the government’s position on supporting low-income earners has not changed and that work is ongoing to operationalize the measure.
The proposed relief was first announced by President William Ruto, who directed the Treasury to develop measures aimed at easing the tax burden on workers earning up to Ksh30,000 per month.
The move would raise the current tax-free threshold from Ksh24,000 and potentially provide additional disposable income to thousands of employed Kenyans.
The proposal formed part of the government’s broader efforts to cushion low-income earners from the rising cost of living and increase their purchasing power.
While the relief is yet to be formally included in legislation, the Treasury’s latest assurance signals that the proposal remains part of the government’s fiscal agenda and could be introduced once the ongoing review process is concluded.
