PAYSLIP REVOLT: Treasury CS drops BOMBSHELL September deadline for major tax cuts after Finance Bill fury
MILLIONS of Kenyan workers could finally see relief on their shrinking payslips as National Treasury Cabinet Secretary John Mbadi sets an emergency deadline to overhaul the country’s brutal tax system.
KENYAN workers crushed by a grueling cost-of-living crisis have been handed a major glimmer of hope after National Treasury Cabinet Secretary John Mbadi vowed to finalize long-awaited tax cuts before the end of September.
The dramatic announcement comes amid rising fury over shrinking net pay and widespread panic that President William Ruto’s government was backtracking on its promises to slash deductions for low- and middle-income earners.
Speaking during a high-stakes media briefing on Tuesday, CS Mbadi confirmed he is launching a intense one-month public consultation to draft the new Tax Laws Amendment Bill.
The Cabinet Secretary revealed the government is reconsidering its earlier plans following powerful interventions from industry leaders, including the Kenya Bankers Association.
“I have a month to do public participation and get people’s opinions. We had suggested between Ksh30,000 and Ksh50,000, but there are other Kenyans, especially the Kenya Bankers Association, who have come up with another suggestion,” Mr Mbadi declared.
“We want to put them together and then prepare the Tax Laws Amendment Bill, which I will bring to Parliament. Before the end of September, I will be done.”
The Treasury had previously teased a massive tax lifeline: completely exempting workers earning up to Ksh30,000 from Pay As You Earn (PAYE), while slashing the tax rate to 25 percent for those taking home between Ksh30,000 and Ksh50,000.
However, outrage erupted across the nation when the promised relief was mysteriously omitted from the Finance Bill 2026, triggering fierce speculation that struggling families were being abandoned.
Now, Mbadi insists the proposals are on track—and will be rushed straight to Parliament for emergency consideration once public hearings conclude.
The high-stakes move follows scathing warnings from employer groups who caution that Kenya’s soaring tax burden is driving workers to breaking point.
On Monday, the Federation of Kenya Employers (FKE) launched a fierce broadside against the government, demanding wider PAYE bands and immediate rate cuts to stop the bleed from workers’ salaries.
FKE Executive Director Jacqueline Mugo warned that rampant deductions are crippling households and fanning the flames of widespread workplace dissatisfaction.
Employers warned that reduced disposable income is not only starving the local economy of spending power but also placing unbearable financial strain on businesses struggling to keep staff motivated.
If approved by MPs, the upcoming Tax Laws Amendment Bill could deliver the most significant overhaul to Kenyan payslips in years—bringing an end to months of agonizing uncertainty for millions of workers.
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