Treasury Cabinet Secretary John Mbadi has withdrawn an earlier proposal to introduce income tax cuts for salaried workers earning below Sh50,000 in the upcoming Finance Bill, dealing a major setback to thousands of Kenyan employees struggling with the high cost of living.
The tax relief plan had initially raised hopes among low and middle-income earners who expected reduced deductions from their monthly salaries amid rising food prices, transport costs and increased household expenses. However, the Treasury now says the government is focusing on revenue collection and fiscal stability, effectively shelving the anticipated relief measures.
The reversal is expected to affect more than one million salaried workers who had hoped the Finance Bill would provide financial breathing space after months of economic pressure. Analysts warn that the move could trigger public dissatisfaction, especially among workers already burdened by higher taxes and statutory deductions introduced in recent years.
Speaking on the matter, Treasury officials indicated that the government is balancing between easing the burden on citizens and maintaining sufficient revenue to fund development projects and repay public debt. The Finance Bill is expected to spark intense debate in Parliament as Kenyans closely monitor proposed tax measures and their impact on ordinary citizens.
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