Finance Bill 2026: Stakeholders Push for PAYE Tax Relief as Public Participation Begins
Kenya’s debate over the proposed Finance Bill 2026 has officially begun, with stakeholders calling for reductions in Pay As You Earn (PAYE) tax during submissions before Parliament’s Finance and National Planning Committee.
According to proceedings highlighted during a session covered by media , representatives from private sector organizations, banks, and the Institute of Certified Public Accountants of Kenya (ICPAK) presented their views as the committee commenced public participation on the bill.
The discussions come at a time when many Kenyans continue to grapple with the high cost of living, increased taxation, and pressure on household incomes. Several stakeholders argued that reducing PAYE would increase disposable income for workers and stimulate economic activity.
Among the groups presenting memoranda were banking sector representatives and ICPAK, who urged lawmakers to consider tax reforms that balance government revenue collection with economic recovery and business sustainability.
PAYE is one of the government’s key revenue streams, deducted directly from employees’ salaries. However, critics have argued that the current tax burden has significantly reduced workers’ take-home pay, especially following a series of tax measures introduced in recent years.
The Finance Bill is expected to propose amendments to existing tax laws, levies, and revenue measures aimed at financing the national budget for the 2026/2027 financial year. Parliament’s Finance Committee is currently collecting views from the public, professional bodies, and private sector players before the bill is debated in the National Assembly.
Economic analysts say the committee’s recommendations could shape the final direction of the bill, particularly amid growing public scrutiny over taxation policies. Calls for moderation in tax measures have intensified since the widespread opposition witnessed during previous finance bill debates.
ICPAK and other stakeholders are also reportedly pushing for a more predictable tax environment to encourage investment and improve compliance. Business leaders have maintained that excessive taxation risks slowing economic growth and discouraging expansion by companies already facing rising operational costs.
The public participation process is expected to continue over the coming days before legislators compile recommendations and prepare the proposed law for parliamentary debate.
The Finance Bill traditionally attracts significant public interest because it directly affects taxation, salaries, fuel prices, business operations, and the overall cost of living in Kenya.
Lilian Nyiva
