Kenya seeks to raise tax-free income above Sh24,000

The World Bank says low-income earners have been hit the hardest by the difference between before-tax and after-tax wages.

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Tax-free income is set to increase from the current Sh24,000 as the State seeks to cut the top taxation rate in a review that places Kenya at odds with the World Bank.

The National Assembly’s Finance and National Planning Committee aims to review the current five tax bands in the 2026 Finance Bill, as lawmakers seek to reduce the burden on top and low-income earners to boost the formal economy.

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