W orld Bank Proposes Overhaul of Kenya’s Income Tax Structure Amid Economic Challenges

The World Bank has proposed significant changes to Kenya’s Pay As You Earn (PAYE) income tax system, aiming to alleviate the tax burden on low-income earners while increasing contributions from higher-income brackets. These recommendations come as Kenya grapples with high public debt and economic pressures. Proposed Tax Bracket Adjustments The World Bank’s proposals include the following adjustments to Kenya’s income tax rates: • Earnings between KSh24,000 and KSh32,333: Reduce the tax rate from 25% .......