In partnership with

Hello and welcome to the Money Weekly Newsletter, where we cover Mbadi’s latest update on the progress of the zero-PAYE law.

You Use AI Every Day. Why don't you own any of it?

You probably opened something powered by AI before your first coffee this morning. Millions of people do. Almost none of them own a piece of it.

That's been the catch with the AI boom — the biggest gains went to insiders and venture funds, while the companies actually building the frontier stayed private and out of reach.

That's starting to change. A wave of AI IPOs is forming, and a few are shaping up to be among the most retail-accessible mega-listings in years — the rare chance to get in near the ground floor instead of reading about the gains after the fact.

Our free briefing lays out the timeline, the access window, and the filing risk most investors will miss. No credit card. Sent straight to your inbox.

Get the Free Briefing

Treasury to Table Bill Reducing PAYE Tax Rates in September 

Treasury CS John Mbadi revealed that he will table legislation reducing the current PAYE tax rates in September.

According to Mbadi, the changes, aimed at offering relief to salaried workers, were not included in the Finance Bill 2026 as earlier promised because of the several proposals that were suggested by stakeholders.

As a result, the National Treasury will commence public participation on the proposals in August.

After the public participation, a report will be presented to President William Ruto before the legislation is tabled in September.

Initially, the government had planned to raise the tax-free income threshold from Ksh24,000 to Ksh30,000.

"I know that the concerns have been on payslips. Next month, I am embarking on public engagement on how to reduce the tax burden on payslips," Mbadi stated during the launch of the rollout of the 2027/28 budget process.

"We proposed one option, but we also received proposals including reducing PAYE by 5% across the board. By the end of August, we want to consolidate all the suggestions and, with the agreement of President Ruto, introduce legislation in September so that Kenyans get some relief on their pay slips."

Professional bodies, including the Institute of Certified Public Accountants of Kenya (ICPAK), the Kenya Bankers Association (KBA), Deloitte, the Law Society of Kenya (LSK), and Grant Thornton, have also backed the PAYE changes.

There have been delays in tabling the proposal. Initially, Mbadi was to table the Bill in February before it was pushed to the Finance Bill 2026 because of the proximity in timing.

However, when the Finance Bill was published, the proposals were missing. It was expected that the changes would have been introduced as amendments, but that was dropped.

Amid the plans to review the PAYE tax bands, the President also indicated that some Treasury officials were opposed to the changes, given that they would create a Ksh40 billion deficit in revenue collections.

Here is a quick recap of the top news stories for the week:

• Housing PS Charles Hinga says only Ksh803.3 million of the Ksh2.56 billion recorded as Boma Yangu refunds were actual savings withdrawals by contributors. The remaining Ksh1.76 billion was transferred into deposit accounts after buyers were allocated affordable housing units. The government said the withdrawals do not indicate the programme has failed, noting that contributors who have not been allocated houses are legally allowed to withdraw their savings, together with accrued investment income, after giving a 90-day notice. 

• The government has abandoned plans by US investor Everstrong Capital to build a Ksh468 billion Nairobi-Mombasa expressway and will instead expand the existing highway into a minimum four-lane toll road. The Treasury has begun procuring a transaction advisor to review the project's feasibility and attract a private investor. The shift follows the rejection of Everstrong's proposal over financial and technical concerns, as well as fears that high land acquisition costs would result in higher toll charges for motorists.

• Top supermarkets, including Naivas, Carrefour and Quickmart, are under investigation by the Competition Authority of Kenya (CAK) over complaints that customers were charged higher prices at the till than those displayed on shelves. The regulator also examined claims that some retailers inflated prices before offering discounts. Carrefour was ordered to refund a customer after overcharging for a 5kg bag of rice. While most cases did not result in sanctions, CAK said investigations are ongoing. Supermarkets blamed the discrepancies on human error in updating shelf prices.

• Hustler Fund borrowers can now use Safaricom Bonga Points to repay their State-backed loans as the government seeks to improve loan recoveries amid rising defaults. The Financial Inclusion Fund (FIF) says the option recovered Ksh3 million in its first week. The fund currently has a 15% default rate, equivalent to Ksh12.5 billion. The new repayment option comes as the Treasury pushes the Hustler Fund towards self-sustainability by reducing direct government funding.

Catch Up on More News and Money Tips

MONEY254 #MONEYTOK

How to Apply for KRA's Tax Amnesty Before It Expires in December 2026

KRA is waiving penalties and interest on old tax debts under a new amnesty running until December 31, 2026.
The programme applies to tax liabilities accrued on or before December 31, 2025, giving taxpayers a window to clear what they owe without extra charges.

Those who have already paid their principal tax will get automatic waivers, while others can still qualify by settling the principal amount or applying for a payment plan.

Watch the video to learn more.

@money254hq

How to Apply for KRA's Tax Amnesty Before It Expires in December 2026 KRA is waiving penalties and interest on old tax debts under a new a... See more

That’s a wrap for this week’s Money Weekly!

Remember that we can help you compare over 300 loans, savings accounts, current accounts, and more on our website if you’re thinking about your next product.