Treasury Cabinet Secretary John Mbadi said the government intends to raise the PAYE tax exemption limit from the previously discussed KSh 30,000 to KSh 32,800.

The announcement was made at the Eldoret National Polytechnic in Uasin Gishu County during the opening of the Mashujaa Day 2026 Economy Thematic Week, which is themed “An Economy for the People”.

Mbadi indicated that the amendment will be tabled in Parliament by the end of November, and it will only take effect after legislative approval.

Under the current PAYE framework, the first KSh 24,000 of monthly taxable income is taxed at 10 percent, and resident taxpayers receive a monthly personal relief of KSh 2,400.

The Treasury says the higher exemption is designed to ease financial pressure on lower‑income workers and boost consumer purchasing power by allowing them to retain a larger share of earnings.

Mbadi noted that the increase reflects an agreement with President William Ruto to recognise the sacrifices made by Kenyan workers during the recent economic recovery period.

Existing PAYE rules will remain in force until Parliament debates, passes, and enacts the statutory amendment, meaning no immediate change to tax deductions will occur before the bill is approved.