Kenya's Treasury Cabinet Secretary John Mbadi has announced that public consultations regarding Pay As You Earn (PAYE) tax relief will commence in August 2026.
The proposed changes are designed to benefit approximately 3.4 million salaried workers, marking a significant policy shift aimed at easing the tax burden on the formal employment sector.
6% increase from the previous period, indicating a solid expansion in government coffers despite broader economic headwinds.
The timing of the announcement follows a period of robust revenue growth for the Kenya Revenue Authority (KRA), which collected KSh 2.84 trillion during the 2025/2026 financial year.
This figure represents a 10.6% increase from the previous period, indicating a solid expansion in government coffers despite broader economic headwinds.
The administration appears to be leveraging this improved fiscal position to address long-standing calls for tax relief among the middle class.
For investors and market observers, the move signals a potential recalibration of domestic consumption dynamics.