Mbadi proposes PAYE exemption for earners on Sh32,800 and below

Treasury Cabinet Secretary John Mbadi has proposed exempting employees earning Sh32,800 a month or less from Pay As You Earn tax, setting out a further step in the government’s promised relief for lower-paid workers.

According to The Star’s report, Mbadi made the announcement at Eldoret National Polytechnic on Friday, 16 October, during the Mashujaa economy thematic week. He said a Bill would be presented to Parliament in November.

The announcement is a legislative proposal. It does not itself change the amount employers must deduct, and workers should not read the proposed threshold as an exemption already in force.

The scope of the relief, its commencement date and how it would operate alongside other payroll deductions will depend on the text eventually introduced and the parliamentary process. The immediate development is Treasury’s stated plan to seek approval, rather than an enacted tax change.