Everything Kenyans need to know about 2026 Finance Bill
Kenya's Finance Bill 2026 was published on 30th April 2026. It proposes changes to several tax laws and most provisions take effect 1st July 2026, while some kick in 1st January 2027. If passed, it will guide how KRA collects an extra KSh 201 billion in 2026/2027, with KSh 120 billion expected directly from the new measures. 391a8d63 Contents of the 2026 Finance Bill 1. PAYE & Income Tax Changes Tax-free threshold increase: The Bill seeks to raise the tax-free income threshold from the current KSh 24,000. Proposals want the lowest PAYE band expanded from KSh 24,000 to KSh 30,000. New PAYE bands: Introduce a 25% tax rate for monthly income between KSh 30,000 and KSh 50,000. Top rate debate: Kenya Bankers Association and World Bank have pushed for the highest PAYE band to drop from 35% to 30%, with relief increased to KSh 3,000 to create a KSh 30,000 tax-free base. World Bank also suggested funding healthcare through the budget instead of the SHIF levy, and repealing the housing...