Outrage as Mbadi Walks Back Ruto’s Tax Exemption Promise for Low Earners
NAIROBI, Kenya — Treasury Cabinet Secretary John Mbadi has sparked a wave of fury across the country after delivering unexpected news that contradicts a high-profile tax relief promise made by President William Ruto to low-income earners.
During a heated press briefing in Nairobi, Mbadi clarified that the government would not immediately raise the tax-free threshold to KSh 30,000, despite recent assurances from the State House.
The Cabinet Secretary termed a wholesale exemption for those earning below 30k as “catastrophic” for the national coffers, citing a looming KSh 35 billion deficit in the upcoming financial year budget if the move were implemented.
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The Broken Promise
The announcement comes only months after President Ruto, while hosting UDA Party delegates, pledged that his administration would cushion the “hustlers” by exempting everyone earning below KSh 30,000 from Pay As You Earn (PAYE).
For many Kenyans struggling with the high cost of living, that promise was a glimmer of hope.
However, Mbadi’s latest directive maintains the status quo:
- KSh 24,000 and below: Remain exempt from PAYE.
- KSh 25,000 to KSh 30,000: Will continue to be taxed as per the existing brackets.
Economic Reality vs. Political Pledges
Mbadi explained that while the Kenya Kwanza administration is committed to long-term tax reforms, the current fiscal environment cannot support such a massive revenue loss. “We must balance empathy with the reality of our budget,” he noted, responding to sharp questions from journalists.
The news has left millions of workers shocked and devastated. Social media has been awash with criticism, with many accusing the government of “moving the goalposts” on economic relief.
As the 2026 budget cycle approaches, the Treasury now faces the uphill task of calming a public that feels increasingly betrayed by the very policies meant to protect them.
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