Treasury Cabinet Secretary John Mbadi has assured Kenyans that the government is planning long-term measures to reduce individual tax rates but only once a crucial milestone is reached.
Speaking during an interview on NTV on Thursday, December 11, Mbadi explained that the government’s ability to lower taxes hinges on its success in expanding the tax bracket.
“We are actually having a strategy to expand the tax bracket. The moment we bring more people into the tax-paying bracket, we will definitely go a step further and lower the tax rate for individual Kenyans,” he said.
The CS also highlighted ongoing efforts to ease the tax burden on citizens, including the Tax Adjustment Law, which was enacted in December 2024. These adjustments, he said, are part of a broader strategy to create a sustainable tax system in Kenya.
“I know that many Kenyans are struggling, especially middle-income earners, and there has been concern over whether the taxes introduced in 2023 have impacted their pockets,” Mbadi noted. “We have made some adjustments, including the Tax Adjustment Law, to address these challenges.”
The remarks come amid growing public concern over rising taxes, particularly on essential goods and services such as fuel and food, which many Kenyans argue have significantly increased the cost of living.
Mbadi further explained that a substantial portion of tax revenue is used to service national debt, which has now surpassed Ksh12 trillion. “Nearly half of the taxes collected go toward paying interest and principal on debt, leaving limited resources for development projects,” he said in a previous interview.
The CS’s comments underline the government’s balancing act between easing the financial burden on citizens and managing Kenya’s growing debt obligations.