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MPs reject proposals to lower maximum PAYE rate

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Members of Parliament have ignored recommendations from financial sector experts to reduce the maximum Pay-As-You-Earn (PAYE) income tax rate from 35% to between 28% and 30%, despite pressure from various stakeholders.

Instead, the National Assembly’s Finance and National Planning Committee has proposed several amendments to the Finance Bill 2026 that will lower some of the taxes initially proposed by the National Treasury.

The committee estimates that this move will reduce the expected revenue from the bill from Sh120 billion to Sh98.5 billion. This shortfall may force the government to borrow more to finance the Sh4.82 trillion budget for the 2026/2027 financial year.

During the public participation exercise, the Institute of Certified Public Accountants of Kenya (ICPAK), the Kenya Bankers Association (KBA), and Deloitte had recommended that employees earning below Sh30,000 per month should be exempt from PAYE.

Korane declares 2027 gubernatorial bid in Garissa, receives Sheikh endorsement

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Former Garissa County Governor Ali Bunow Korane has finally led a special meeting that brought together more than 200 sheikhs in Garissa town, during which he announced his intention to contest for the Garissa gubernatorial seat in the 2027 elections.

Korane also received blessings from the religious leaders, who made it clear that they will support him in the 2027 elections.

In addition, Korane hinted that he will vie again for the seat in 2027 on the United Democratic Alliance (UDA) ticket, while urging Garissa residents to rally behind President William Ruto as he seeks a second term in office under the same party.

He further strongly condemned criminal activities being carried out by a group of youths terrorizing residents of Garissa town. The group is reported to be armed with knives and machetes and is involved in phone theft, robbery of cash, breaking into shops, and motorcycle theft, among other crimes.

Korane also stated that the sheikhs unanimously agreed to intervene in addressing the rising insecurity by calling for peace in all mosques across Garissa County.

However, he urged security agencies not to be influenced by politicians, but to remain independent and professional while handling security matters.

National Assembly Set for Final Vote on Finance Bill 2026

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The National Assembly is expected to hold a final vote on the Finance Bill 2026 this afternoon, a move that will determine the fate of several tax proposals and revenue-raising measures for the 2026/27 financial year.

Before the vote, lawmakers will consider and vote on proposed amendments during the Committee of the Whole House stage, where specific clauses of the Bill can be amended, approved, or removed.

The government has continued to defend the Bill, arguing that it is crucial for implementing the national budget and supporting economic growth. Treasury Cabinet Secretary John Mbadi said the proposals are part of a broader economic strategy aimed at attracting investment, creating jobs, and strengthening economic resilience.

However, opposition lawmakers have maintained their opposition to the Bill, arguing that some of the proposed tax measures will place an additional burden on citizens. On their part, Majority Leader Kimani Ichung’wah and Finance Committee Chairperson Kimani Kuria insisted that “extensive public participation was conducted and several controversial proposals were revised or dropped following consultations with stakeholders.”

Meanwhile, former Deputy President Rigathi Gachagua has urged opposition MPs to vote against the Bill, while the Consumer Federation of Kenya (COFEK) continues to seek court intervention to suspend some of the contested provisions.

The outcome of today’s vote is expected to have significant implications for tax policy, government spending, and the financing of the nearly KSh4.8 trillion budget for the 2026/27 financial year.

Police Investigate Network Recruiting Youths to Join ISIS in Mozambique

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Kenyan police have launched investigations into allegations of a network involved in recruiting and radicalizing youths from the Coast region to join international terrorist groups, following the arrest and arraignment of two suspects.

The suspects, Yusuf Mbashir Swaleh and Abdulkarim Mohamed Salim, are facing several terrorism-related charges, including allegedly recruiting and coordinating individuals seeking to join the Islamic State (ISIS) militant group operating in Mozambique.

The Kwale court was told that the two suspects allegedly organized recruitment meetings, mobilized financial support and facilitated travel arrangements for youths intending to cross into Mozambique and join the extremist network.

Prosecutors opposed their release on bail, arguing that they pose a flight risk due to alleged international connections and may interfere with digital evidence or influence witnesses who are expected to testify in the ongoing case.

Investigators from Kenya’s Anti-Terrorism Police Unit (ATPU) revealed that the probe has uncovered a broader recruitment network targeting vulnerable youths, with authorities continuing to track other individuals suspected of being linked to the operation.

Security agencies have maintained that dismantling such networks remains crucial in preventing radicalization and protecting young people from being drawn into violent extremist activities.

Pressure Mounts on Government to Reveal Details of JKIA Expansion Contract

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Pressure is mounting on the government to provide clarity and transparency over the tendering process for the planned expansion and modernization of Jomo Kenyatta International Airport (JKIA), a multi-billion-shilling infrastructure project.

Civil society groups, political leaders and legal experts have questioned the secrecy surrounding the contract, warning that they may move to court to compel the government to disclose all details regarding the agreement, including the successful bidder and the terms of the deal.

Reports indicate that Chinese firms China Road and Bridge Corporation (CRBC) and Sinohydro submitted bids for the project, with CRBC reportedly emerging as the leading contender for the contract.

The expansion project is estimated to cost between KSh 150 billion and KSh 180 billion, depending on exchange rate variations and final project requirements.

Critics argue that due to the enormous amount of public resources involved, Kenyans have a right to understand the financing arrangements, contractual obligations and the expected benefits of the airport modernization programme.

The JKIA expansion is expected to improve passenger capacity, enhance airport facilities and strengthen Kenya’s position as a regional aviation hub.

Ol Kalou By-Election Becomes a Political Battle for Influence in Mt Kenya

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The upcoming Ol Kalou parliamentary by-election scheduled for July 16 has emerged as one of the most closely watched political contests in the Mt Kenya region ahead of the 2027 General Election.

The race is largely viewed as a contest between supporters of Deputy President Kithure Kindiki and former Deputy President Rigathi Gachagua, highlighting the growing political rivalry over influence in the region.

The main contest is expected to be between United Democratic Alliance (UDA) candidate Muchina Nyaga and Democracy for Citizens Party (DCP) candidate Kamau Ngotho, who has received backing from Gachagua’s political camp.

Political analysts say the by-election has shifted from a local leadership contest to a symbolic battle that could determine which political side holds greater influence in the Mt Kenya region.

However, some residents have expressed concern that national political rivalries are overshadowing local development issues, urging candidates to focus on unemployment, infrastructure and economic challenges affecting the people of Ol Kalou.

The outcome of the election is expected to shape political strategies as the country moves closer to the 2027 polls.

Maraga Criticizes Government for Compensating Victims Without Prosecuting Police Officers

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Former Chief Justice David Maraga has criticized the government’s decision to compensate victims of police brutality without taking criminal action against officers accused of carrying out the violations.

Speaking during an interview, Maraga said that while compensating victims and their families is an important step, true justice requires those responsible for unlawful actions to be investigated, prosecuted and held accountable in court.

He warned that failing to prosecute officers implicated in human rights abuses could weaken public confidence in the justice system and create a culture of impunity among law enforcement officers.

Maraga also emphasized that police officers are only allowed to use firearms as a last resort when their lives or the lives of others are in immediate danger, questioning whether that standard was met in the cases under review.

His remarks come amid growing concerns from victims’ families and human rights organizations over the lack of prosecutions, even as the government prepares to begin issuing financial compensation to those affected by police-related abuses during demonstrations.

Wajir to Benefit from Sh4.5 Billion Road Project

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Residents of Wajir are set to benefit from improved infrastructure after the government secured approximately KSh4.5 billion in funding for the construction and upgrading of urban roads.

The project, funded by the OPEC Fund for International Development and implemented by the Kenya Urban Roads Authority (KURA), aims to upgrade 31 roads covering a total of 65 kilometres to bitumen standards.

The roads are expected to enhance transportation, improve road safety, increase access to essential services, and stimulate economic activities within Wajir town.

Eldas MP Adan Keynan welcomed the project, saying, “The government’s plan to improve Wajir’s roads is bringing significant transformation and demonstrates a commitment to building a modern town that supports economic and social development.”

Keynan said the 65-kilometre project, which residents had waited for more than two decades, marks a major step in the transformation of Wajir town.

He also commended President William Ruto for continuing to implement development projects in Northern Kenya.

The project comes just weeks after Wajir hosted the Madaraka Day celebrations, during which several road and drainage projects were undertaken, helping to transform the town’s landscape.

US and Iran Sign Historic Accord to Ease Middle East Tensions.

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US President Donald Trump and Iranian President Masoud Pezeshkian have signed an agreement aimed at ending the conflict in the Middle East.

Under the accord, Iran has agreed to reduce its uranium enrichment levels in exchange for being allowed to resume oil exports.

President Trump signed the agreement document during a dinner with French President Emmanuel Macron at the Versailles Palace, following the G7 summit.

The spokesperson for the Iranian Foreign Ministry, Esmail Baqaei, was quoted by the state news agency IRNA stating that the agreement document has been officially finalized after being signed by the respective presidents.

Under the deal, the United States has promised to ease certain sanctions and support the establishment of a $300 billion fund for the reconstruction of Iran.

Ruto Calls for Fairer Global Partnerships with Africa

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President William Ruto wants the G7 nations and other international partners to work with Africa in a way. He thinks they should help Africa make things and create jobs of just taking Africas raw materials.

President William Ruto said this when he was talking about how to make the economy grow and make sure everyone has a life. He said Africa does not want to work with people who only care about themselves and do not help Africa.

President William Ruto said “Africa is no longer interested in partnerships that benefitothers while leaving value on the continent.”

He thinks it is very important to have partnerships where everyone gets something out of it.

President William Ruto also said that by the year 2050 Africa will have a lot of people working 40 percent of all the workers in the world. This shows how important Africa is going to be for the worlds economy.

President William Ruto talked about all the minerals Africa has that people need to make electric cars, clean energy and new technology. He wants people from countries to come and work with Africa to make these things in Africa so Africa can have more jobs and be stronger.

President William Ruto thinks that if Africas economy is strong it will be good for everyone in the world. There will be places to sell things more chances to invest and the economy will grow in a good way.

President William Ruto said “The future of Africa must be built on partnerships that create shared prosperity, for Africa and its global partners.”