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Thursday, May 1, 2025

President Ruto Announces Major Tax Reforms to Uplift Kenyan Workers During Labour Day Address

 



 President William Ruto today unveiled a bold set of economic and tax reforms aimed at empowering Kenyan workers and advancing national self-reliance, as the country marked its 60th Labour Day celebrations at the historic Uhuru Gardens National Stadium in Nairobi County.

Addressing thousands of workers and dignitaries, President Ruto emphasized his administration’s commitment to supporting enterprises, growing the economy, and honouring the critical role of the Kenyan workforce in national development.

“We are taking bold and measurable steps to make Kenya truly self-reliant by growing the economy, supporting enterprises and uplifting workers,” President Ruto declared.

In a major policy shift, the Head of State announced that employers will now apply tax reliefs and exemptions directly when calculating Pay As You Earn (PAYE), a move expected to boost workers' take-home pay by eliminating delays previously experienced in accessing tax benefits.

To further honour those who have served the nation, President Ruto revealed that all pension and gratuity payments—both in the public and private sectors—will be fully tax-exempt. “This is a mark of honour to our retirees and a step towards safeguarding their dignity in retirement,” he said, drawing loud applause from the crowd.

The President also used the occasion to commend Kenyan workers for their resilience and contribution to national growth, noting that Kenya has now emerged as the sixth-largest economy in Africa.

“Your dedication has brought us this far. We appreciate your invaluable contribution to our economy and society,” he said.

The event, marked by colourful performances and a show of solidarity from trade unions and labour organizations, comes at a time when the government is focusing on economic reforms to create jobs, boost productivity, and reduce the cost of living.

President Ruto concluded his address with a call for unity, urging all stakeholders—employers, workers, and government agencies—to work together to build a more equitable and prosperous Kenya.

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