Payslips blow as Mbadi holds back tax cut plan

Cabinet Secretary for the National Treasury and Economic Planning John Mbadi appears before the senate committee  at County Hall, Nairobi on August 20, 2025.

Photo credit: Dennis Onsongo | Nation Media Group

Treasury Cabinet Secretary John Mbadi has walked back on an earlier promise of income tax cuts for salaried workers earning below Sh50,000 before the end of the current financial year, dealing a blow to more than one million employees who anticipated cushions from the rising cost of living.

Mr Mbadi on February 9 promised that salaried workers earning Sh50,000 and below would enjoy income tax cuts of between Sh731 and Sh2,127 under proposed changes to Pay-As –You- Earn (PAYE) tax brackets aimed at cushioning low-income earners from inflation.

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