Treasury Cabinet Secretary John Mbadi has assured public servants that the government is implementing measures to reduce financial pressures on their payslips.
Speaking in Parliament during a special assembly session, Mbadi acknowledged the growing concerns over high deductions, including taxes, loans, and statutory contributions.
“We have taken deliberate steps to ease the burden on the payslip.
The government is reviewing deductions and seeking ways to ensure workers take home a reasonable salary,” Mbadi stated.
The CS noted that one of the key interventions is a review of the Pay-As-You-Earn (PAYE) tax structure.
He mentioned that discussions are ongoing to adjust tax brackets to shield low-income earners from excessive taxation.
Additionally, he said the government is engaging lenders to restructure loan repayment terms for civil servants.
Another major issue raised was the rising cost of living, which has made it difficult for workers to meet their daily needs despite salary increments.
Mbadi assured Parliament that the Treasury is working on policies to stabilize inflation and control essential commodity prices.
Union representatives welcomed the announcement but demanded clear timelines on implementation.
Kenya National Union of Teachers (KNUT) officials, for instance, urged the government to expedite the review of house and commuter allowances.
“We appreciate the steps taken, but we need urgent solutions. Public servants are drowning in deductions,” one union leader remarked.
Mbadi assured stakeholders that the Treasury is committed to a long-term solution and will engage all relevant parties.
“We want to ensure our workforce is motivated and well-compensated,” he concluded.
The announcement comes as pressure mounts on the government to balance economic growth with fair compensation for workers.
