Mbadi said Treasury could not skip public participation because doing so would leave the proposed changes open to legal challenges. He said the government would first allow Kenyans to give their views before the proposals are turned into a Bill for consideration by Parliament.
By Bradley BosireThe planned law is expected to address growing concerns over shrinking payslips after months of public complaints about PAYE, the Affordable Housing Levy and contributions to the Social Health Insurance Fund (SHIF).
By Maureen KinyanjuiKRA also surpassed its customs revenue target after collecting Sh988.8 billion against a target of Sh980.8 billion, achieving a performance rate of 100.8 per cent. Domestic revenue reached Sh1.851 trillion, equivalent to 93 per cent of the target for the financial year.
By Maureen KinyanjuiAccording to TSC, the issue arose following the implementation of amendments introduced under Section 7 of the Tax Laws (Amendment) Act, 2024, which changed Section 15(2) of the Income Tax Act by exempting employee contributions to the Affordable Housing Levy (AHL) Fund and the Social Health Insurance Fund (SHIF) from income tax
By Chrispho OwuorUnder the revised law, individual taxpayers will be required to file their income tax returns by the last day of the fourth month after the end of their year of income. For most individuals whose year of income ends on December 31, the filing deadline will now be April 30.
By Maureen KinyanjuiAuditor-General Nancy Gathungu’s review for the year ended June 30, 2025, details how the county’s staffing and payroll structures operated with weak controls, allowing irregular payments and incomplete personnel records to go unchecked.
By Maureen KinyanjuiAccording to reports, the variation appeared in June payslips processed by the Teachers Service Commission (TSC), with teachers noting higher income tax deductions despite no corresponding salary increment
By Chrispho OwuorThe National Assembly passed the Finance Bill, 2026, in its Third Reading with 122 votes in favour against 40 nays. The vote is among efforts by the government to fund the Sh4.8 trillion budget for the 2026-27 fiscal year.
By Bradley BosireSome participants also raised objections to taxes on betting winnings, saying such earnings are relied upon by many households as a source of income and should not be further reduced through additional deductions.
By Maureen KinyanjuiUnder 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 Kenya Bankers Association says real incomes have fallen 10.7%–12% over five years and proposes a uniform 5% PAYE reduction across all income bands to boost purchasing power, GDP, jobs and MSME lending.
By Chrispho OwuorAt the centre of the probe was the corporation’s failure to remit Pay As You Earn (PAYE) deductions despite recovering the money from staff salaries.
By David Bogonko Nyokang'iSpeaking during a press briefing in Nairobi on Monday, the CS said reforms such as a simplified “mitumba” tax regime, reduced phone import taxes, and a shift in filing timelines are aimed at easing business costs, improving efficiency, and boosting revenue collection rather than raising prices, stressing that “there is miscommunication around this.”
By David AbonyoOdhiambo also raises issues with the proposed tax treatment of mitumba imports. The Bill introduces a new Section 12H in the Income Tax Act, which assumes a 5% profit on customs value and requires payment before goods are released by the Kenya Revenue Authority. She says this means a trader bringing in goods worth Sh1 million would pay Sh50,000 whether or not they make profit or loss, calling the approach unfair.
By Chrispho OwuorThe college’s accounting team admitted that statutory deductions were not remitted on time during part of the 2024/2025 financial year, linking the situation to a drop in government funding that affected its cash flow
By David Bogonko Nyokang'iUnder the suggested structure, earnings below Sh30,000 would not attract PAYE. Income between Sh30,001 and Sh50,000 would be taxed at 15 per cent, while those earning between Sh50,001 and Sh100,000 would pay 20 per cent. A rate of 25 per cent would apply to income from Sh100,001 to Sh400,000, with any amount above Sh400,000 taxed at 30 per cent.
By Maureen KinyanjuiBefore releasing the funds, the company withheld Sh1 million, citing statutory obligations including PAYE, NSSF, the Social Health Insurance Fund, and the Housing Levy. This action sparked a new dispute, including contested execution steps and an attempt to attach company property to recover the deducted amounts.
By Maureen KinyanjuiThe new Excel-based PAYE return template has been released under the theme “KRA Simplifies the PAYE Return Filing Process.”
By Ann NyamburaMbadi said the government had explored ways to reduce PAYE through simulations, but the failure by KRA to meet its revenue targets made the proposal unsustainable.
By Maureen Kinyanjui