Treasury Cabinet Secretary John Mbadi has confirmed that teachers, police officers, and other low-income earners are excited about new tax relief measures targeting Kenyans earning Ksh30,000 and below.

Speaking during the launch of Ziidi Trader on Tuesday, Mbadi said the reforms are part of the government’s bottom-up economic transformation agenda.

“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 explained that the reforms were designed to ease the financial burden on the lowest-paid workers while strengthening the foundation of the economy 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 added that the next Ksh20,000 of income will also be taxed at a lower rate of 25 per cent instead of 30 per cent, further increasing take-home pay for 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 said.

The Cabinet Secretary said that teachers and police officers he meets regularly have expressed excitement over the tax changes.

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

The announcement builds on President William Ruto’s earlier declaration on February 4, during a UDA aspirants’ meeting at State House, Nairobi. Ruto said the government plans to reduce Pay As You Earn (PAYE) taxes for Kenyans earning up to Ksh50,000 to ease the cost of living.

“We would not be able to reduce taxes if we had not set the foundation right. That is why we are going to Parliament. We are now saying that any Kenyan who earns less than 30,000 shillings will not pay any taxes,” Ruto said.

Millions gain tax relief

Ruto also proposed that for those earning up to Ksh50,000, the tax rate will be reduced from 30 per cent to 25 per cent. “1.5 million working Kenyans will not pay any taxes. Another 500,000 will have their taxes reduced from 30 per cent to 25 per cent,” he added.

Mbadi has been a vocal supporter of the reforms. Speaking at a public engagement in Kiambu on February 1, he said the tax relief measures are intended to put more money into the pockets of low- and middle-income earners while stimulating the economy.

“Those salaried Kenyans, we have 3.5 million earning salaries. They carry the burden for almost everybody. It is not fair. Anybody earning below 30,000 in this country should pay zero tax. Zero,” Mbadi said.

According to Treasury estimates, the reforms will benefit over 1.5 million workers earning below Ksh30,000, while the broader PAYE reduction will affect more than three million salaried Kenyans.