Ruto Proposes PAYE Tax Exemption for Workers Earning KSh 32,333 or Less

By Saliamo Naibei 

President William Ruto has proposed exempting workers earning KSh 32,333 or less per month from paying Pay As You Earn (PAYE) income tax in a move aimed at easing the cost of living for low-income earners.

Speaking during the national Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret, Uasin Gishu County, on Monday, October 20, 2026, President Ruto said the government had prepared a proposal to allow eligible workers to retain more of their monthly earnings.

“We have prepared a proposal to exempt Kenyans earning KSh 32,333 per month or less from paying Pay As You Earn income tax,” the President said.

Ruto noted that the proposed tax relief would help low-income households meet essential expenses, including food, transport, school fees and other daily needs, amid rising living costs.

The Head of State said he had directed the National Treasury to present the proposals to Parliament next week for consideration and the necessary legislative procedures.

If approved and implemented, the exemption would increase the take-home pay of eligible workers by reducing the amount deducted from their salaries as income tax.

However, the proposal is not yet in force. Workers will have to wait for the relevant legislative and implementation processes to be completed before the exemption can take effect.

The proposed PAYE exemption was among four measures announced by the President during the Mashujaa Day celebrations in Eldoret.

The other proposals include reducing land transfer costs for properties valued at KSh 1 million or less, removing the 25 per cent import duty on imported mobile phones, and expanding the national internship programme to accommodate an additional 50,000 graduates starting January 2027.

The proposals are expected to undergo further consideration as the government seeks to implement the announced measures through the relevant legal and administrative processes.