What can I do about this ugly soffit above my cabinets to update it.

In photo 5 there is a vent, so clearly duct work runs behind at least part of the soffit. I would repaint the cabinets, change hardware and paint soffit same color as cabinets to make it appear bigger and brighter until you can afford to open up and reroute ducts in the soffit.

You can knock out a soffit if there is no function

it may be hiding a duct

then you can use the top of cabinets for storage or display

baskets etc

The first thing you need to find out is if there is anything hidden inside the soffit. If not just remove it and install your new taller cabinets. A lot of times (if you watch hgtv shows) the soffit is hiding pipes.

Not understanding why you find the soffit “ ugly.”

I have a feeling that if you paint the cabinets a lighter color and extend that color to the underside of your soffit, you just might be saying goodbye to ugly!

The color paint on your soffit is exquisite!

MaybI please ask what color you may be considering for your cupboards?

Hang some attractive Plates or Pictures or Ornaments on the soffit. Or Mirror Tiles. Add Sticky backed tiles to your backsplash - You could also use them on the soffit

First thing I see is the bright orange color calling attention to a feature that you don't like. Cabinets, although not high-end look to be in good condition. Many folks paint these white for a look that they find more appealing. I like the backsplash and it would look much better with white cabinets. There are vinyl backsplash panels available in a variety of designs that just stick in place. You won't ruin that lovely tile job if you change your mind.

I agree completely with Naomi Moore's answer. I have the exact situation in my kitchen, I wanted the soffit gone but it would have been a major expense so I opted to paint it the same color as my cabinets, and used a molding to "marry" the transition between the cabinets and the soffit to make it appear more seamless, as though the cabinets just extended up to the ceiling. Good luck, there are many things you can do to improve the look of your kitchen without spending a lot of money if you are willing to invest your own time. Just start something and it will give you the confidence to continue.

Hi Sue, hope some of these ideas in this link help you out. You can paint it a contrasting color to your walls, wallpaper it, even put chalkboard pain on it,

https://www.housebeautiful.com/design-inspiration/news/g2283/space-above-kitchen-cabinets/?slide=1

Here are a few more ideas

1. Add moulding. This is a great option even for a large, deep soffit, as it uses moulding in a way that covers a wide expanse.
2. Thicken the soffit as a border around the kitchen.
3. Lower the entire kitchen ceiling to soffit height.
4. Paint the ceiling. The soffit will blend with the cabinetry in contrast.
5. Get rid of it altogether as seen from an Apartment Therapy reader.
6. Go monotone with the walls, cabinets, and soffits.
7. Opt for built-in shelf niches.
8. Make the soffit look like a beam.
9. Display artwork in a linear gallery. This example is in a breakfast nook, but would work well in a kitchen soffit application.
10. Make the soffit a continuation of a sidewall to create a nook within the kitchen.

In many homes soffits hide ugly pipes and vents. You would need to make a hole and look into it to see what is in there.