Why banks are pushing for lower PAYE

KBA Chief Executive Raimond Molenje. [Wilberforce Okwiri, Standard]

The banking industry has proposed a downward review of pay as you earn (PAYE) tax bands to raise the minimum taxable personal income from the current Sh24,000 to Sh30,000, with a maximum PAYE band at 30 per cent.

The industry said this would boost disposable income, empower workers, support Micro, Small, and Medium Enterprises (MSMEs) and increase revenue collection by the government through increased consumption and investment