President Ruto Proposes Major Income Tax Relief For Kenyans Earning Under KSh32,333 Monthly

President William Ruto has proposed exempting Kenyans earning KSh32,333 or less per month from paying Pay As You Earn (PAYE) income tax.

Speaking during the 63rd Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret, Uasin Gishu County, on Tuesday, October 20, 2026, the Head of State said the government had prepared a proposal to ease the tax burden on low-income earners.

“We have prepared a proposal to exempt Kenyans earning KSh32,333 per month or less from paying pay-as-you-earn income tax,” Ruto said.

The proposed exemption is intended to increase the disposable income of low-income workers, helping them meet essential expenses such as food, transport and school fees amid rising living costs.

Under the current PAYE structure, taxable employment income is subject to progressive tax rates, with the lowest band taxed at 10 per cent. If approved, the proposal would provide tax relief to eligible salaried workers earning within the specified threshold.

The proposal is part of broader discussions on tax reforms aimed at easing the cost of living and supporting household spending.

For the measure to take effect, the government must pursue the necessary legislative process, including consideration by Parliament and public participation where required.

If implemented, the exemption would leave eligible workers with more take-home pay and could support consumer spending across the economy.

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