News
MPs question decades-long write-off of Sh1.3 billion pyrethrum losses
At the centre of the probe was the corporation’s failure to remit Pay As You Earn (PAYE) deductions despite recovering the money from staff salaries.
PAYE
Business
Treasury clarifies mitumba, phone and PAYE changes in Finance Bill 2026
Speaking during a press briefing in Nairobi on Monday, the CS said reforms such as a simplified “mitumba” tax regime, reduced phone import taxes, and a shift in filing timelines are aimed at easing business costs, improving efficiency, and boosting revenue collection rather than raising prices, stressing that “there is miscommunication around this.”
News
Former LSK boss raises alarm over Finance Bill 2026 tax burden on households and businesses
Odhiambo also raises issues with the proposed tax treatment of mitumba imports. The Bill introduces a new Section 12H in the Income Tax Act, which assumes a 5% profit on customs value and requires payment before goods are released by the Kenya Revenue Authority. She says this means a trader bringing in goods worth Sh1 million would pay Sh50,000 whether or not they make profit or loss, calling the approach unfair.
News
MPs question Bukura College over tax delays and Sh11.2m construction records
The college’s accounting team admitted that statutory deductions were not remitted on time during part of the 2024/2025 financial year, linking the situation to a drop in government funding that affected its cash flow
Business
Banks seek PAYE overhaul to ease pressure on workers
Under the suggested structure, earnings below Sh30,000 would not attract PAYE. Income between Sh30,001 and Sh50,000 would be taxed at 15 per cent, while those earning between Sh50,001 and Sh100,000 would pay 20 per cent. A rate of 25 per cent would apply to income from Sh100,001 to Sh400,000, with any amount above Sh400,000 taxed at 30 per cent.
News
Court bars levy and SHIF deductions on post-termination awards
Before releasing the funds, the company withheld Sh1 million, citing statutory obligations including PAYE, NSSF, the Social Health Insurance Fund, and the Housing Levy. This action sparked a new dispute, including contested execution steps and an attempt to attach company property to recover the deducted amounts.
News
KRA gives employers July deadline to shift to new PAYE system
The new Excel-based PAYE return template has been released under the theme “KRA Simplifies the PAYE Return Filing Process.”
News
Treasury drops PAYE relief plan as revenue falls short
Mbadi said the government had explored ways to reduce PAYE through simulations, but the failure by KRA to meet its revenue targets made the proposal unsustainable.