Treasury signals income tax relief with Sh78bn cuts

John Mbadi

Treasury Cabinet Secretary John Mbadi speaks to journalists in Kisumu on July 4, 2026.

Photo credit: Alex Odhiambo | Nation Media Group

The Treasury expects Kenya’s budget deficit to grow by Sh143 billion to Sh1.288 trillion, driven by higher interest payments on domestic debt and potential tax cuts in the run-up to the 2027 General Election.

A wider budget deficit signals increased borrowing because government spending has surpassed revenues by a larger margin than previously planned.

PAYE Tax Calculator

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