CS Mbadi Defends Tax Relief Plan: ‘It’s a Lot to Someone Earning 30,000’

Treasury Cabinet Secretary John Mbadi has defended the government’s decision to raise Kenya’s minimum taxable income from KSh24,000 to KSh30,000, noting that teachers, police officers, and other low-income earners have welcomed the move.

Speaking during the launch of Ziidi Trader on Tuesday, Mbadi explained that the tax reforms are part of the government’s bottom-up economic transformation agenda, aimed at easing financial pressure on low- and middle-income workers.

“Those who are earning 30,000 and below should pay zero tax. And it is not just those earning 30,000 and below; even if you are earning a million, your first 30,000 will not be taxed,” Mbadi said.

He added that the reforms will help reduce the financial burden on the lowest-paid workers while strengthening Kenya’s economic foundations from the ground up.

“Look at how much that 6,000 from 24,000 to 30,000 was attracting tax today. The tax on 6,000 was 25 per cent, which is 1,500 shillings. It is nothing to someone earning a million, but to the person earning 30,000, it is a lot. Wacha madharau, wacha kudharau watu – stop underestimating the impact on people,” he said.

Mbadi also highlighted that the next KSh20,000 of income will be taxed at a reduced rate of 25 per cent instead of 30 per cent, putting more money directly into the pockets of middle- and low-income earners.

“That is another 1,000 shillings in their pockets. It may be nothing to you, but for someone who survives on 6,000 per week, it makes a difference,” he explained.

The Cabinet Secretary said teachers and police officers he regularly interacts with have expressed excitement over the reforms.

“They are very happy, very excited with us, Your Excellency,” he said.

According to Treasury estimates, the tax changes will directly benefit over 1.5 million workers earning below KSh30,000, while the broader PAYE reductions will impact more than three million salaried Kenyans, increasing their take-home pay and improving their livelihoods.

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