Push to cut PAYE: Private sector wants 30 per cent tax cap to boost incomes

Kepsa urges Parliament to cut top PAYE tax to 30% to boost workers' incomes and economic growth.[iStock]

The Kenya Private Sector Alliance has formally petitioned Parliament to cap the highest Pay As You Earn (PAYE) tax band at 30 per cent, down from the current 35 per cent, in a bid to ease pressure on Kenyan workers' shrinking incomes.

In a high-level meeting with the National Assembly Departmental Committee on Finance and National Planning, the private sector presented proposals for the Finance Bill 2026 aimed at addressing what it termed a "triple crisis" of fiscal strain, energy constraints, and regulatory instability.