Treasury Plans to Raise PAYE Tax Exemption to KSh 32,800
New PAYE tax exemption plan announced
The National Treasury has announced plans to increase the Pay As You Earn (PAYE) tax exemption threshold to KSh 32,800.
This move aims to reduce financial pressure on lower-income workers by increasing their take-home pay. The proposed amendment will be tabled in Parliament in November.
Background
The current tax framework exempts the first KSh 24,000 of monthly taxable income from a 10 percent PAYE rate, with a monthly personal relief of KSh 2,400.
The new exemption limit is an increase from the previously proposed KSh 30,000 and requires parliamentary approval to become law.
Source: Nairobi Wire. AI-assisted summary.
