New PAYE Tax Bands Set for Debate in Parliament Ahead of Finance Bill 2026 Vote - Kenyans.co.ke

The National Treasury has released the Finance Bill 2026, proposing changes to PAYE tax bands. Kathiani MP Robert Mbui tabled amendments to Clause 22, introducing a progressive rate structure: 10% up to Ksh360,000, 17.5% on the next Ksh100,000, 25% from Ksh460,000 to Ksh6,072,000, 27.5% on the next Ksh3,600,000, and 30% above Ksh9,600,000 annually. The changes, effective January 1, 2027, would affect over 3.1 million Kenyan workers. The bill also expands the definition of royalties to include digital payment networks and redefines gambling winnings under the Gambling Control Act, 2025.