Finance Committee Endorses Changes in PAYE, 8 Other Taxes

Kenyans can breathe a sigh of relief after the National Assembly Finance Committee recommended several changes to the Tax Laws (Amendment) Bill 2024.

Among the notable changes proposed by the committee included the adjustment of the Pay As You Earn (PAYE) bands. The move followed an uproar by stakeholders over higher PAYE cuts imposed on Kenyans earning Ksh500,000 and above.

During public participation, stakeholders lamented over the introduction of a 32 per cent PAYE cut on Kenyans earning between Ksh500,000 and Ksh800,000 and 32.5 per cent on employees earning above Ksh800,000.

Stakeholders argued that the deductions exceeded the average rate of 30 per cent thus placing pressure on employees whose net pays were already strained by other deductions.

While addressing the concern, the Finance Committee assured the participants that the National Treasury would soon begin the process of eliminating the current top bands to improve the progressivity of all salaried Kenyans.