The government is weighing a reduction in both Value Added Tax (VAT) and Income Tax in the 2026 Finance Bill as part of efforts to ease the burden on Kenyan taxpayers. Treasury PS Chris Kiptoo, during a Legislative Retreat in Naivasha making presentations on the state of the economy and national security on January 29, 2026. For example, an average Kenyan earning Ksh100,000 per month currently pays around Ksh30,000 in income tax. A moderate reduction could see their monthly tax fall by about Ksh3,000, leaving more money for household expenses or savings. Similarly, a reduction of VAT from 16 per cent to 15 per cent would lower the cost of consumer goods.