Treasury Cabinet Secretary John Mbadi claimed that recent tax reforms are already lifting the morale of low income earners across the country.
Mbadi said interactions with frontline public servants, particularly police officers and teachers, reveal growing satisfaction following the government’s decision to remove income tax on those earning below Ksh30,000.
“When I meet police officers, they are very happy with us. The teachers earning Ksh30,000 are very excited,” Mbadi said, attributing the positive mood to tax relief measures targeting lower income workers.
According to the CS, cutting off tax for people earning less than Ksh30,000 has allowed thousands of households to retain more of their monthly income.
The move forms part of a broader fiscal adjustment by the government aimed at cushioning vulnerable earners from the impact of the high cost of living.
For years, unions representing teachers, police officers, and other civil servants have argued that heavy taxation on modest salaries left workers struggling to meet basic needs, even as inflation continued to rise.
Teachers earning around Ksh30,000 have often complained that statutory deductions left them with little disposable income, forcing some to take loans to survive between paydays.
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Police officers, particularly those at the lower ranks, have voiced similar frustrations, citing long working hours and mounting personal expenses.
Mbadi defended the policy shift, arguing that easing the tax burden on low income earners not only improves morale but also boosts productivity and trust in government.
He noted that happier public servants are more likely to deliver better services to citizens, strengthening the social contract between the state and its workers.
However, critics have cautioned that tax cuts must be balanced against the government’s revenue needs. Some economists warn that reduced collections from PAYE could strain public finances unless matched by improved efficiency, widened tax compliance, or economic growth.
Despite the concerns, the Treasury insists the reforms are targeted and sustainable. Mbadi maintained that the government remains committed to protecting low income earners while pursuing fiscal discipline, saying the relief measures are a step toward restoring dignity to workers whose earnings have been stretched thin for years.
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