The banking industry is lobbying the government to cut pay-as-you-earn (Paye) tax rates by five percentage points across all income bands, arguing that the move would restore workers’ purchasing power, support economic growth and strengthen tax revenues.
In a proposal submitted to the Treasury, the Kenya Bankers Association (KBA) said the uniform reduction should be accompanied by a cap on the top Paye rate at 30 percent, in line with the National Tax Policy approved in 2023, which states that personal income tax rates should not exceed the corporate tax rate.
