Treasury Cabinet Secretary John Mbadi disclosed an upward revision of the zero PAYE threshold to KSh 32,800 per month during the Mashujaa Day 2026 Economy Thematic Week in Eldoret on 19 October 2026.

The new figure replaces the KSh 30,000 threshold that the government had previously floated earlier in 2026.

The adjustment is part of a standalone Tax Laws Amendment Bill that the government intends to table in Parliament in November 2026.

Under the proposal, any salaried employee earning KSh 32,800 or less each month would retain their entire gross salary with no PAYE deduction.

The measure is aimed at workers in low‑wage sectors such as retail, security and domestic employment, where monthly earnings often fall below the new threshold.

If the bill passes, the revised zero‑PAYE band could become effective as early as January 2027, although the government has not confirmed a specific start date.

Mbadi did not clarify whether the next income band, covering earnings between KSh 32,801 and KSh 50,000, will also be adjusted, leaving the impact on higher earners uncertain.

The Treasury has not released the full text of the amendment bill, and the details of any changes to higher PAYE brackets remain pending.

The government frames the exemption as part of a broader effort to ease the cost of living and stimulate consumer spending amid persistent inflation pressures.