Mbadi's Tax Relief U-Turn Sparks Outrage as Trans Nzoia Residents Accuse Government of Betraying Low-Income Earners

Treasury Cabinet Secretary John Mbadi's decision to drop the proposed Pay As You Earn (PAYE) tax relief for low- and middle-income earners from the Finance Bill has sparked sharp criticism from residents, professionals, and clergy in Trans Nzoia County, who have accused the government of abandoning struggling Kenyan workers.

Speaking to Vipasho News on Sunday evening in Kitale Town, Trans Nzoia resident Tom Wekesa condemned the omission of the promised tax relief, arguing that it leaves low-income earners burdened by stagnant wages and rising statutory deductions, including contributions to the Social Health Insurance Fund (SHIF) and the Affordable Housing Levy.

"The omission of the promised PAYE tax relief in the Finance Bill will severely hurt low-income families. Families are already spending the bulk of their earnings on basic needs such as food, rent, and transport. The lack of tax relief directly reduces the amount of money they have left for survival," said Wekesa.

He faulted the government for prioritizing immediate revenue collection targets over long-term economic growth, warning that the decision would place an even heavier burden on workers already struggling under difficult economic conditions.

"I wish to remind President William Ruto and his Cabinet Secretary of the promises made to low-income earners. Where is the exemption from PAYE for those earning KES 30,000 or less? Where is the proposed five percent reduction for those earning up to KES 50,000 to cushion them against the rising cost of living?" he posed.

Financial expert Paul Otenge Osiro also criticized the government's apparent change of position and urged Members of Parliament to push for the tax reforms to be reinstated during parliamentary deliberations on the Finance Bill.

"There is an urgent need for this matter, which is of national importance, to be reviewed afresh. The President should listen to the concerns of Kenyans and grant tax relief to cushion low- and middle-income earners from excessive tax burdens while supporting economic recovery," said Osiro.

According to Osiro, the move has particularly affected workers earning between KES 30,000 and KES 50,000 per month, many of whom had anticipated relief following earlier government assurances.

Kitale trader and Mama Mboga, Janerose Wasike, reminded the President of commitments made during the election campaign to ease the financial burden on ordinary Kenyans.

"Many low-income earners spend most of their salaries and business income on essentials such as food, rent, transport, and school fees. They need relief now more than ever," she said.

Trade unionist Wamalwa Masiga argued that any proposed tax relief should also have covered workers earning up to KES 60,000 per month, noting that rising living costs have affected employees across the board.

Masiga, who also serves as the Deputy Executive Secretary of the Trans Nzoia County Government Workers Chapter, recalled President Ruto's announcement on February 2, 2026, regarding a significant tax relief package for low- and middle-income earners.

"Why raise taxpayers' hopes and then quietly remove the relief? This is a betrayal of Kenyan workers and risks killing employee morale across the country," said Masiga.

As debate over the Finance Bill continues, pressure is mounting on the government and lawmakers to reconsider the proposed tax measures amid growing concerns over the cost of living and the welfare of ordinary Kenyans.