Treasury Cabinet Secretary John Mbadi has assured Kenyans that the government is still committed to reducing Pay As You Earn (PAYE) tax, despite delays in rolling out the proposal.

Speaking during a televised interview on Citizen TV, Mbadi explained that the initiative to lower PAYE originated from the government itself and will now move into formal discussions aimed at implementation.He emphasised that the process will involve structured consultations and will begin immediately as part of his duties at the Treasury.According to him, the government is determined to ensure that the tax relief becomes a reality and is not abandoned or ignored.

Mbadi further clarified that the proposal will go through public participation before being introduced into legislation, ensuring that Kenyans have a chance to contribute their views.

The plan under consideration includes exempting workers earning up to Sh30,000 per month from paying PAYE, while also reducing tax rates for those earning up to Sh50,000.This measure is intended to ease the financial burden on low-income earners who have been affected by the high cost of living.

In addition, the Kenya Bankers Association (KBA) has put forward a separate proposal suggesting a five percentage-point cut in PAYE across all income levels, along with a cap of 30 percent on the highest tax bracket.The KBA estimates that such a move could inject Sh28.1 billion into workers’ incomes, boost consumer spending, create around 36,000 jobs annually, and increase overall economic output by Sh210 billion.

The discussions highlight ongoing efforts between the government and private sector stakeholders to reform taxation and improve disposable income for salaried workers in Kenya.