Mbadi dismisses criticism of planned tax cuts
National
By
Graham Kajilwa
| Feb 11, 2026
National Treasury Cabinet Secretary John Mbadi has lashed out at government critics opposing the proposed tax cuts, which have been termed as 2027 campaign tool.
Mbadi says the cuts are set to benefit the low-income earners, unlike how it is being portrayed.
The CS said the proposal expected to be in the Tax Laws (Amendment) Bill, 2026, will add Sh1,500 to those earning Sh30,000 which is a significant improvement to the socio-economic lifestyle of the individual.
The proposal seeks to raise the upper limit of tax-free income from Sh24,000 to Sh30,000.
READ MORE
Dutch brewer Heineken to cut up to 6,000 jobs
Kenya Power loses Sh1b to illegal connections, vandals in Meru
Inside Israeli's bid to make Kenya a startup nation
Naivas receives Sh134 million insurance payout for protest losses
Having capital is no longer advantageous but its velocity is
The silent exit: A signal digital businesses should never ignore
CMA lines up more reforms as State targets retail traders
CBK lowers rate amid push for more credit access
Kenya, Italy hand 130 African startups keys to AI revolution
Counties to receive Sh495.7bn as Cabinet approves Sh4.7trn budget
“When I meet police officers and teachers, they are excited,” he said. “We have even gone ahead and proposed that even the next Sh20,000, instead of taxing it at 30 per cent, we do 25 per cent. That is another Sh1,000.”
The CS said for a low-income earning person, adding them Sh2,000 to Sh3,000 equates to a lot of money. He noted that the intention is to put money in the pockets of such individuals.
“If you say it is a campaign, it is okay. Even you, you are campaigning. That is why you are scandalising the Sh1,500 we are giving people,” said the CS. “If it is a campaign tool and it gives money back to Kenyans, it is okay. It is a good campaign strategy.”
Over the weekend, DAP-K Party leader Eugene Wamalwa and Trans Nzoia Governor George Natembeya criticised the intention by the government saying its an effort that is coming in too late.
“Do not give in to the political gimmicks of Zakayo and his taxes. When we were at Bomas, we asked for tax reductions in 2023, why didn’t they reduce it? In 2024, when Gen Z asked for tax reductions, why didn’t they effect it?” posed Wamalwa.
Governor Natembeya said teachers and police officers are already with taxes and levies such as the National Social Security Fund (NSSF).
“Government workers, including police officers, are deducted 40 per cent of their income to pay taxes. In every Sh10 they make, Sh4 stays with the government,” he claimed.
CS Mbadi argued that some of the critics of this proposal fall in the high-income bracket hence they do not see the socio-economic significance of it.
This proposal has also been embraced by the Federation of Kenya Employers (FKE), who say it will significantly increase take-home pay.
FKE Executive Director and Chief Executive Jacqueline Mugo called it a positive step that will significantly improve Kenyans’ take-home pay.
“I don’t think it is a loss for the government. It is a win-win,” she said.