Feature: World Bank Pushes for Lower PAYE for Low income Earners in Kenya.

28 May 2025

The World Bank has proposed significant changes to Kenya’s Pay As You Earn (PAYE) system, which could see low- and middle-income earners pay less in income taxes while high-income earners face higher rates. If adopted by the government, these reforms would adjust tax bands, making the system more progressive—ensuring that those who earn more contribute more, while easing the burden on lower-income workers.