In a bold fiscal pivot aimed at breathing life into a suffocating economy, the government has announced a sweeping tax relief package for low-income earners. Treasury Cabinet Secretary John Mbadi has declared that Kenyans earning less than Ksh30,000 per month will no longer pay a single cent in Pay As You Earn (PAYE) tax.

Speaking at the Kiambu National Polytechnic during a public engagement forum, Mbadi revealed that the decision was reached after direct consultations with President William Ruto. The move is a tacit admission that the current tax regime has choked consumer demand to a standstill. "We have looked at the economy and we can see it choking," Mbadi admitted candidly. "People don't have money in their pockets to buy from you people. Hakuna mtu ananunua mboga."

Breaking Down the Numbers

The relief extends beyond the lowest bracket. For those earning between Ksh30,000 and Ksh50,000, the tax rate will be slashed from 30% to 25%. This tiered approach is designed to cushion the "hustlers" who form the backbone of the workforce but have borne the brunt of recent economic shocks.

• Zero-Rated Bracket: Approximately 1.5 million salaried Kenyans earn below Ksh30,000. For them, this policy effectively increases their disposable income immediately.
• Middle Relief: The reduction for the Ksh30k-50k bracket targets the lower middle class, a demographic that has been sliding into poverty due to inflation and statutory deductions.
• Legislative Fast-Track: Mbadi promised to bypass the lengthy Finance Bill process, taking the proposal directly to Parliament as an amendment to ensure speedy implementation.

Stimulating the Grassroots

The economic logic is straightforward: put money back into the hands of those who spend it immediately on essentials. By boosting the purchasing power of over 3 million workers, the state hopes to jumpstart the circulation of money at the village and estate level. "We want to give you something in your pocket so that you can spur demand," Mbadi emphasized.

For the average worker in Kiambu and beyond, this announcement is not just policy; it is a lifeline. The challenge now lies in Parliament, where MPs must pass the amendment without delay to turn this promise into a paycheck reality.