Nominated MP John Mbadi has weighed in on ongoing discussions about reducing Pay As You Earn (PAYE) and Value Added Tax (VAT), cautioning that any tax reforms must be approached carefully to avoid crippling government services.
Speaking during a recent public forum, Mbadi acknowledged that while there is public appetite for lower taxes, especially PAYE and VAT, any changes must be methodical.
“We said that we would like to reduce PAYE and VAT. However, you have to be methodical in doing all these; otherwise, you may reduce taxes to the extent that you are unable to provide goods and services,” he said.
Mbadi emphasized the delicate balance between tax relief for citizens and ensuring the government can meet its obligations, including infrastructure, education, and healthcare. He also pointed out that Kenya’s current VAT rate is already among the lowest in the region.
His remarks come amid growing debate over the proposed Finance Bill 2025, which contains sweeping tax reform proposals.
As public participation continues, Mbadi’s comments add a pragmatic voice to the national conversation, urging fiscal caution even as economic pressures mount on ordinary Kenyans and businesses alike.
By Kenyans