John Mbadi outlines tax relief for workers earning below Sh30,000

Lower take-home pay pressure just got targeted relief, with a payroll levy rethink aimed squarely at small earners while lawmakers get put on the clock.

Tax break pitch for low earners

• John Mbadi floated a zero payroll levy for modest wages.
• Threshold set at Sh30,000 and under.
• Framed as easing daily price pain.
• Needs lawmakers to sign off.

How it would work

• Everyone at or below Sh30,000 pays nothing.
• Income above that starts counting again.
• First Sh30,000 stays untouched.
• Remainder faces a lighter cut.

The middle bracket gets trimmed

• Rates between Sh30,000 and Sh50,000 get shaved.
• Top slice drops from thirty to twenty-five percent.
• Example earners keep more cash monthly.
• Designed to nudge spending back up.

Who benefits overall

• About 1.5 million workers fall under the line.
• Roughly 244,000 more gain partial relief.
• Total relief pool nears 1.7 million people.
• Salaried workers lead the pack.

Political green light

• William Ruto backed fast-tracking the idea.
• Ordered a quick trip to Parliament.
• A separate amendment bill is lined up.
• Finance Bill wait gets skipped.

No new taxes promise

• The government signaled restraint on fresh levies.
• Borrowing addiction flagged for cuts.
• Revenue focus shifts to balance.
• Message pitched as pocket-first.

Widening the tax net

• Informal earners told that hiding days are numbered.
• The fairness argument leaned on shared roads.
• Compliance is framed as systems-led.
• Kenya Revenue Authority tasked to nudge, not bully.

Where it was aired

• People’s Dialogue Forum hosted the reveal.
• Location tagged as Meru.
• Crowd reaction used as a sounding board.
• Pressure now shifts to legislators.