New PAYE Exemption Rules to Benefit Low-Income Earners
Treasury proposes tax exemption for 362,846 more Kenyans
National Treasury Cabinet Secretary John Mbadi has announced plans to raise the monthly tax exemption threshold from KSh24,000 to KSh32,333, benefiting an additional 362,846 formally employed Kenyans.
The proposed framework, which follows a directive from President William Ruto, will increase the total number of salaried Kenyans exempted from PAYE to approximately 1.692 million.
Low-income earners, particularly those in the KSh24,000 to KSh32,333 bracket, will see an immediate boost of KSh2,083 in net monthly income once the changes become law.
The National Treasury is drafting the legislative measure, with the aim of introducing the bill in Parliament and having it take effect in January.
Source: Nairobi Wire. AI-assisted summary.
