1.7m workers to get tax free salary, top earners pay more

The Cabinet Secretary for the National Treasury and Economic Planning John Mbadi addressing the media on the Financial Year 2026/27 budget and the economic measures to support Kenyans at the National Treasury, Nairobi on May 25, 2026. 

Photo credit: Dennis Onsongo | Nation Media Group

An extra 362,846 formal sector workers will be exempted from paying taxes under the ongoing review of income taxes that will see those earning over Sh50,000 pay more.

Treasury Cabinet Secretary John Mbadi says fresh proposals will amend current income tax bands and raise the threshold of untaxed income from Sh24,000 to Sh32,333, which will trigger the removal of the Sh2,400 relief available to all workers.

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Note: The results are not exact but very close to the actual.