Treasury Cabinet Secretary John Mbadi is facing mounting criticism after the much-anticipated reduction of PAYE tax for salaried workers failed to appear in the 2026 Finance Bill.
The backlash follows earlier promises by the government that low-income earners would receive tax relief to cushion them against the rising cost of living. Many Kenyans had expected reforms targeting workers earning below KSh30,000 monthly, after Mbadi previously stated that such earners should pay zero PAYE.
Among those criticizing the omission is former Law Society of Kenya president Faith Odhiambo, who questioned why the Treasury failed to include the promised reforms despite raising public expectations. She argued that employed Kenyans deserve an explanation for what many now see as a major policy U-turn.
The Finance Bill instead contains several controversial proposals that could increase pressure on ordinary Kenyans. These include:
The controversy also revives painful memories of the 2024 Finance Bill protests, where thousands of young Kenyans took to the streets over proposed tax increases and the rising burden on taxpayers.
As pressure continues to mount, many salaried workers are now waiting to see whether Parliament will amend the bill or if the Treasury will issue further clarification on the missing PAYE relief proposals.
The backlash follows earlier promises by the government that low-income earners would receive tax relief to cushion them against the rising cost of living. Many Kenyans had expected reforms targeting workers earning below KSh30,000 monthly, after Mbadi previously stated that such earners should pay zero PAYE.
Among those criticizing the omission is former Law Society of Kenya president Faith Odhiambo, who questioned why the Treasury failed to include the promised reforms despite raising public expectations. She argued that employed Kenyans deserve an explanation for what many now see as a major policy U-turn.
The Finance Bill instead contains several controversial proposals that could increase pressure on ordinary Kenyans. These include:
- A proposed increase in residential rental income tax from 7.5% to 10%
- A proposed 25% excise duty on mobile phones
- Removal of VAT exemptions on money transfer and payment processing services
The controversy also revives painful memories of the 2024 Finance Bill protests, where thousands of young Kenyans took to the streets over proposed tax increases and the rising burden on taxpayers.
As pressure continues to mount, many salaried workers are now waiting to see whether Parliament will amend the bill or if the Treasury will issue further clarification on the missing PAYE relief proposals.
