Dimmed hopes as Mbadi backtracks on promise to reduce workers’ PAYE

Treasury Cabinet Secretary John Mbadi has backpedalled from an earlier promise to include income tax cuts for salaried workers earning below Sh50,000 in the Finance Bill, dealing a blow to more than one million employees who anticipated cushions from the rising cost of living.

Instead, the Treasury has increased tax on rent, mobile phones, beer, cigars and betting in the race to raise Sh120 billion from the Finance Bill, 2026, up from Sh30 billion it targeted via the Finance Act 2025.