Kenya PAYE Relief Proposal: Current Tax Bands and October Status
Kenya’s proposed PAYE relief has not changed the tax bands currently published by the Kenya Revenue Authority (KRA). Treasury Cabinet Secretary John Mbadi said in September that public participation on the proposal would begin in the first week of October 2026. On October 9, the National Treasury’s public-notices listing did not show a PAYE consultation notice, so we could not confirm from the official listing that the exercise had begun.
For payroll today, use the current KRA rules. The proposal is not an instruction to employers and should not be used to estimate a future salary increase. Any new rates would need to be published and enacted before they take effect.
What Treasury proposed
In February, Treasury proposed exempting workers earning KSh30,000 or less a month from PAYE and reducing the rate for the KSh30,000–KSh50,000 income range to 25%. In September, Mbadi said public participation would precede a separate bill because the measures were not included in the Finance Act 2026. These are reported policy proposals; final thresholds, rates and a start date could change during the legislative process.
What KRA currently lists
KRA’s published monthly bands start at 10% on the first KSh24,000 of taxable income, then 25% on the next KSh8,333, 30% on the next KSh467,667, 32.5% on the next KSh300,000 and 35% above KSh800,000. KRA also lists personal relief of KSh2,400 a month for eligible resident individuals. The published bands took effect on July 1, 2023.
Example using today’s bands: if a resident employee has KSh30,000 in monthly taxable employment income and receives the full KSh2,400 personal relief, the band calculation is KSh2,400 on the first KSh24,000 plus KSh1,500 on the next KSh6,000, less KSh2,400 relief: KSh1,500 PAYE. This illustration assumes the stated taxable income and relief eligibility; a payslip may differ when taxable benefits, allowable deductions or other applicable reliefs are included. It is not a take-home-pay estimate.
How workers can check a payslip
- Ask payroll which amount was treated as taxable employment income.
- Check that the applicable KRA bands and any personal relief are reflected.
- Compare the PAYE line with other deductions separately; changes to PAYE do not automatically change other statutory deductions.
For a specific payslip question, ask your employer’s payroll team or KRA. Before relying on a change, check KRA’s current PAYE guidance and the Treasury’s public notices for a published proposal, bill or commencement date.
Sources
- KRA: Current individual income tax bands and reliefs
- National Treasury: Public notices
- The Eastleigh Voice: Treasury’s announced consultation timetable, September 16, 2026
- The Star: February report on the proposed PAYE relief
Updated October 9, 2026. This article explains a reported proposal and current published tax bands; it is general information, not individual tax advice.
