He said after meeting these needs, there is little or nothing left to save.
“That money is for rent, transport, and eating with your wife and children,” he said, stressing that taxing such income only pushes families deeper into hardship.
Mbadi explained that the government has listened to the cries of workers and understands the pressure caused by the high cost of living.
Prices of food, fuel, rent, and school-related expenses have continued to rise, leaving many households struggling.
He said the aim of government policy should be to protect low-income earners, not punish them.
The Treasury CS revealed that discussions have already taken place at the highest level of government.
He said he has sat down with President William Ruto, and they have agreed that tax relief for low-income earners is necessary.
According to Mbadi, plans are underway to reduce taxes so that workers can take home more pay and live with dignity.
He noted that when workers have more disposable income, the entire economy benefits.
Families are able to spend more in local markets, pay school fees on time, and meet their daily needs without constant stress.
Mbadi said reducing taxes for low-income earners is not just a political promise but an economic decision meant to stimulate growth.
Mbadi also addressed concerns about government revenue. He said tax reforms do not mean the government will stop collecting revenue altogether.
Instead, the focus will shift to fair taxation, where those who earn more contribute more, while those earning little are given breathing space.
He emphasized that tax policy must be balanced and humane.
The CS urged Kenyans to be patient as the government works on the necessary legal and policy changes.
He said such reforms take time but assured the public that the commitment is genuine.
Mbadi added that the government is also reviewing other measures to ease the cost of living, including reducing unnecessary charges and improving efficiency in public spending.