Good News To Workers Earning Less, As Rutto Exempts Them From PAYE

President William Ruto has proposed a major tax relief that will put more money directly into the pockets of low-income earners.

According to an update shared by NTV Kenya on October 20, 2026, the President wants workers earning up to Sh32,333 per month to be fully exempted from paying PAYE. This means if you earn below that amount, you will not be taxed by the government.

In the same proposal, Ruto also wants to scrap stamp duty on land deals of up to Sh1 million. This is a big relief for young Kenyans and hustlers who dream of owning a small piece of land.

The President says the move is aimed at easing the cost of living which has been hitting Kenyans hard.

For a long time, workers have complained that their payslips are squeezed by many deductions. There is PAYE, SHIF, Housing Levy, and NSSF. By the time the money hits the account, very little is left. This new proposal could be a game-changer.

If Parliament approves the plan, a worker earning Sh32,000 will now take home the full amount without PAYE. That is an extra Sh3,000 to Sh4,000 that was previously going to KRA.

On land, many Kenyans have been locked out of ownership because of hidden charges. Stamp duty of 2% to 4% on a Sh1 million plot is up to Sh40,000. Removing that fee will make it cheaper for ordinary mwananchi to become a landowner.

The announcement comes just a day after Ruto said he will present a full account of what his government has achieved. It is clear he is now focusing on policies that touch the common mwananchi directly.

If implemented, this will be one of the biggest tax reliefs for low earners in recent years.

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