By Shephrah Nasambu

President William Ruto has announced plans to exempt workers earning Sh32,800 or less per month from Pay As You Earn (PAYE) income tax in a proposed tax relief measure aimed at easing the cost of living for low-income households.

The proposal was announced during the 2026 Mashujaa Day celebrations held at Kipchoge Keino Stadium in Eldoret, Uasin Gishu County, where the President outlined measures his administration intends to pursue to improve the financial well-being of Kenyans.

Ruto said the proposed exemption would enable workers in the lower-income bracket to retain more of their earnings and use the additional money to meet essential household expenses, including food, transport, school fees and other family needs.

“First, we have prepared a proposal to exempt Kenyans earning Sh32,800 per month or less from paying as you earn income tax,” the President said.

He noted that workers earning modest salaries often face significant financial pressure as they struggle to meet their daily needs, adding that even small savings from reduced taxation could make a meaningful difference to their households.

“For workers on modest incomes, every shilling saved means more money for food, transport, school expenses, and the needs of their families,” Ruto said.

The President said he had directed the National Treasury to present the proposed tax changes to Parliament for consideration, in line with the required legal and legislative procedures.

If approved and implemented, the measure would reduce the income tax burden on eligible workers, allowing them to take home a larger share of their monthly salaries.

The proposed exemption could benefit employees across various sectors, particularly those whose earnings fall within the lower-income category, as households continue to grapple with the cost of basic goods and services.

However, the proposal is yet to take effect and will require the necessary legislative and administrative steps before qualifying workers can begin benefiting from the tax relief.

The announcement formed part of Ruto’s address during the national Mashujaa Day celebrations, which brought together national leaders, foreign dignitaries and thousands of Kenyans in Eldoret to honour individuals who have contributed to the country’s independence, development and progress.