Under the proposal, monthly PAYE would be structured at 10 per cent for the first Sh30,000, 20 per cent on the next Sh8,333, 25 per cent on the next Sh461,667, 27.5 per cent on the next Sh300,000 and 30 per cent on income above Sh800,000.
By Maureen KinyanjuiKEPSA said the Finance Bill comes at a time when Kenya’s fiscal situation remains under pressure, with the National Treasury targeting Sh3.38 trillion in ordinary revenue collection for the 2025/2026 financial year. At the same time, businesses continue to face high production and operational costs.
By Chrispho OwuorThe National Assembly’s Finance and National Planning committee has started public stakeholder engagements on the Finance Bill, 2026. Consultations run until May 29 as Parliament seeks views on proposed tax measures expected to raise about Sh117 billion.
By David AbonyoThe Finance Bill 2026 additionally proposes an increase in residential rental income tax from 7.5 per cent to 10 per cent. The proposal is backed by enforcement measures, including agent-based withholding systems aimed at improving compliance.
By Bradley BosireThe Kenya Revenue Authority has issued a Sh23.1 billion tax demand on the sale of Tullow Oil Kenya BV to Auron Energy, detailing capital gains, VAT and withholding tax now under objection review.
By David Bogonko Nyokang'iThis is the first time in five quarters that the tax rate has remained unchanged despite a cut in the CBK’s Central Bank Rate (CBR). The CBK lowered the CBR to 9.25 percent from 9.50 percent on October 7, 2025, extending a monetary policy easing cycle that began in August last year and has reduced the rate by a total of 3.75 percentage points.
By Maureen KinyanjuiThe Central Bank has gradually lowered the benchmark lending rate from 13 percent in August last year to 9.75 percent this June.
By Rose Achieng