The Kenya Bankers Association (KBA) has proposed a revision of PAYE tax bands that would see the minimum taxable income raised from Sh24,000 to Sh30,000, with the highest tax rate capped at 30%.

In a ten-point submission to the National Treasury ahead of the 2026 Finance Bill, KBA argues the move would ease pressure on low-income earners, boost disposable income, and stimulate savings, investment, and consumption, ultimately widening the tax base and increasing government revenue.

Under the proposal:

— Income below Sh30,000 would be tax-exempt
— Sh30,001–Sh50,000 taxed at 15%
— Sh50,001–Sh100,000 taxed at 20%
— Sh100,001–Sh400,000 taxed at 25%
— Above Sh400,000 taxed at 30%

The banking industry believes this structure will empower workers, support MSMEs, and promote inclusive economic growth