Sam Gituku Breaks Down What PAYE Relief For Kenyan Workers Really Means For Take Home Pay

Kenyan workers expecting a higher tax-free salary threshold to significantly boost their take-home pay may see a smaller increase than anticipated, according to Citizen TV journalist Sam Gituku.

Gituku spoke on Thursday, October 22, during a Citizen TV discussion, explaining how the proposed changes could affect workers’ monthly earnings after statutory deductions.

He said salaries of up to KSh 24,000 are currently exempt from Pay As You Earn (PAYE) tax. If the threshold rises to KSh 32,333, an additional KSh 8,333 would fall within the tax-exempt range.

“While that amount may not be subject to PAYE, it will attract SHIF, Housing Levy and NSSF deductions,” Gituku said.

These statutory deductions could reduce the amount workers ultimately receive, even if a larger portion of their salaries becomes exempt from PAYE.

According to Gituku’s breakdown, the resulting increase in take-home pay could be approximately KSh 1,200 or slightly more, rather than the full KSh 8,333 suggested by the higher threshold.

For workers managing tight household budgets, the difference between the additional tax-exempt amount and the actual increase in their bank accounts could be significant.

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