Kenyan banks have proposed reducing the Pay As You Earn (PAYE) tax bands, arguing that easing the financial pressure on salaried workers could revive consumption and stabilise the economy weighed down by weak household demand.
In submissions to the National Treasury ahead of the Finance Bill 2026, the Kenya Bankers Association (KBA) wants the minimum taxable income raised from Sh24,000 to Sh30,000 and the top PAYE rate capped at 30 percent.
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