TSC closes September payroll as teachers await PAYE relief for low-income earners

Teachers during a meeting at State House, Nairobi, on September 14, 2025
  • TSC has closed the September 2026 payroll, with teachers expected to receive their salaries by Friday.
  • The Gov’t has postponed the planned PAYE review for lower-income workers from September to October 2026.
  • President Ruto has proposed exempting workers earning below Ksh 30,000 from PAYE while reducing the tax burden for those earning up to Ksh 50,000.

The Teachers Service Commission (TSC) has closed the September 2026 payroll, with teachers expected to receive their salaries in their bank and Sacco accounts by Friday this week.

The payroll closure on September 16, 2026, means the processing of teachers’ September salaries can now proceed as scheduled.

Teachers have also been advised that there will be no changes to Pay As You Earn (PAYE) deductions this month. The planned review of PAYE for lower-income workers has reportedly been postponed from September to October 2026, meaning employees will continue to be taxed under the existing rates for the current month.

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President William Ruto had earlier proposed changes to PAYE as part of measures aimed at increasing workers’ disposable income. Under the proposal, employees earning below Ksh 30,000 per month would be exempted from PAYE, while those earning between Ksh 30,000 and Ksh 50,000 would receive a reduction in their tax burden.

The President had also noted that removing PAYE for lower-income workers could create a revenue gap of about Ksh 40 billion, requiring the government to explore alternative ways of raising revenue.

By Obegi Malack

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