Workers earning less than Sh30,000 to get tax relief in new reforms

By Lawrence Ongaro

Treasury Cabinet Secretary John Mbadi has said the government plans to introduce a bill in Parliament that will shield low-income earners from taxation while offering relief to middle-income workers.

Mbadi explained that under the proposed changes, employees earning Sh30,000 will not be taxed, while those earning Sh50,000 and above will benefit from reduced tax rates.

He spoke on Sunday, February 1, during a public engagement forum held at Kiambu National Polytechnic, where he met residents to discuss the state of the economy and hear their views.

Public forum in Kiambu

The forum brought together a cross-section of participants, including students, businesspeople, teachers, members of the public, and persons with disabilities. Mbadi said the government had embarked on county visits to better understand the realities citizens face in running businesses and managing household finances.

Kiambu is among several counties he has already toured, including Kakamega, Migori, and Eldoret. He said he is also scheduled to visit Meru, Garissa, and Kilifi in the coming days as part of a broader public participation drive on economic reforms.

Mbadi noted that 75 percent of Kenya’s population is made up of young people under the age of 35, saying the government is developing targeted programmes to uplift them economically.

“The government is fully committed to ensuring that the country’s economy improves so that every Kenyan can sustain themselves wherever they are,” he said.

Accountability and State assets

He emphasized the need for accountability, transparency, and prudent use of public resources, adding that wastage and mismanagement of funds would undermine economic recovery efforts.

On the controversial issue of selling state assets, Mbadi said the government is taking a cautious approach in considering the partial sale of major state corporations to raise funds for critical development projects.

“Many people are asking questions about that plan, especially the sale of Safaricom shares. But even previous governments did the same, particularly during former President Mwai Kibaki’s tenure,” he said.

Pension delays under review

Mbadi also addressed concerns raised by retirees, saying he has received complaints about delayed pension payments. He assured the public that the matter is under urgent review to ensure retired workers receive their dues without further suffering.

The five-hour forum allowed participants from different sectors to raise questions directly with the Cabinet Secretary, in what he described as a productive and inclusive engagement.