Kenya Bankers Association

03/06/2026

“Serikali inapaswa kurahisisha mfumo wa kodi na kuufanya uwe wa kueleweka na wa kutabirika ili kupanua wigo wa kodi na kuongeza mapato. Kila mwaka sera na viwango vya kodi hubadilika, jambo linalowachanganya walipakodi. Sera ya Kitaifa ya Kodi ililenga kurahisisha mfumo huu na kuufanya uwe thabiti, hatua inayoweza kusaidia sekta muhimu k**a biashara ndogo za MSMEs ambazo zinaajiri Wakenya wengi.”
— Kennedy Mutisya, CFO, Kenya Bankers Association

03/06/2026

“Mswada wa Fedha wa 2026 umeshindwa kujumuisha baadhi ya mapendekezo ya wadau, yakiwemo kupunguzwa kwa PAYE kwa asilimia 5. Katika miaka mitano iliyopita, mishahara halisi ya wafanyakazi nchini Kenya imepungua kwa takriban asilimia 10–12 kutokana na kuongezeka kwa makato ya kisheria k**a SHIF, SHA na NSSF. Tunahitaji nafuu hii ili kuwawezesha wafanyakazi kushiriki kikamilifu katika uchumi na kuchochea ukuaji.”

— Kennedy Mutisya, CFO, Kenya Bankers Association

03/06/2026

Mbashara
https://www.tv47.digital/live-tv/

03/06/2026

Coming Up...

Our Chief Finance Officer Kennedy Mutisya will be live on TV 47 Kenya to discuss the banking industry’s proposal for a 5% PAYE reduction and its potential impact on economic growth, job creation, and household purchasing power.

He will unpack how increased disposable income will stimulate consumption, expand access to credit, and support MSMEs and broader economic activity.

03/06/2026

A 5% reduction in Pay As You Earn (PAYE) across all income tax bands will leave more money in workers’ pockets, enabling them to spend more, save more, and invest in opportunities that improve their lives.

The increased disposable income will stimulate economic activity and boost government revenues through higher consumption rather than income taxation alone.

Our analysis shows that higher take-home pay will enable more Kenyans to qualify for loans, unlocking up to KES 140 billion in additional lending for housing, education, business expansion, and other productive investments.

In turn, this will create jobs, grow businesses, and help offset the revenue forgone through the proposed PAYE relief.

03/06/2026

A 5% reduction in Pay As You Earn (PAYE) across all income tax bands will leave more money in workers’ pockets, enabling them to spend more, save more, and invest in opportunities that improve their lives.

The increased disposable income will stimulate economic activity and boost government revenues through higher consumption rather than income taxation alone.

Our analysis shows that higher take-home pay will enable more Kenyans to qualify for loans, unlocking up to KES 140 billion in additional lending for housing, education, business expansion, and other productive investments.

In turn, this will create jobs, grow businesses, and help offset the revenue forgone through the proposed PAYE relief.

02/06/2026

The Government will create at least 36,000 new jobs every year in the economy if it implements a 5% reduction in Pay As You Earn (PAYE) for all workers across all income tax bands.

The 5% PAYE reduction will also release about KES 28.1 billion into the economy each year, generate nearly KES 42 billion in additional economic output, and strengthen demand for goods and services from MSMEs across the country.

The reduction will also unlock up to KES 140 billion in additional lending capacity from banks and other formal financial services providers, supporting business expansion, investment, and job creation.

01/06/2026

29/05/2026

With a 5% PAYE cut for all workers, the Government can grow the economy while also collecting more taxes through higher spending and increased VAT collections.

Our projections show the proposal could grow the economy by about KES 210 billion and generate an extra KES 27 to 31 billion in tax revenue within one year, helping recover the revenue initially given back through the tax relief.

More money in workers’ pockets means more spending, stronger businesses, more jobs, and a healthier economy for everyone.

28/05/2026

“If the Government proceeds with taxing digital payments, it risks driving consumers back to ‘mattress banking’ and the informal economy, where revenue collection becomes far more difficult.

Instead of increasing taxes on digital transactions, we should be reducing the cost of payment platforms to encourage financial inclusion, transparency, and economic growth.”

— Raimond Molenje, CEO, Kenya Bankers Association