Ruto Announces Proposed Tax Relief for Workers as Parliament Set to Consider New PAYE Limit

President William Ruto has announced plans to raise the monthly salary threshold for Pay As You Earn (PAYE) tax exemption from Ksh30,000 to Ksh32,333, in a proposed change that could give low-income workers more money to meet their daily expenses.

Speaking during the 63rd Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret, Uasin Gishu County, on Tuesday, October 20, Ruto said the government was preparing measures to reduce the tax burden on salaried Kenyans, particularly those whose earnings are largely consumed by basic household needs.

The proposed adjustment would increase the income level below which workers would not pay PAYE, potentially providing relief to employees who struggle to balance food expenses, transport costs, school fees and other essential bills on modest salaries.

Ruto said the government recognised the importance of protecting the earnings of low-income workers, arguing that even a small increase in take-home pay could make a difference to households facing financial pressure.

“We have prepared a proposal to exempt Kenyans earning Ksh32,333 per month or less from paying PAYE income tax. For workers on modest income, every shilling saved means more money for food, transport and school expenses,” the President stated.

The announcement signals a proposed expansion of tax relief for salaried employees, although the changes will depend on the outcome of the legislative process.

Until the proposal is approved and implemented, workers will need to continue observing the existing PAYE requirements.

Ruto confirmed that he had instructed the National Treasury to take the proposal to Parliament the following week for consideration, placing the next stage of the process in the hands of lawmakers.

“I have directed the National Treasury to place these proposals before Parliament next week,” he added.

The proposed increase comes amid continued public concern over the cost of living and the pressure on household budgets. For employees earning around the new threshold, the final decision could determine whether they retain a larger share of their monthly salaries.

However, the President indicated that the government would not bypass the procedures required to introduce the changes, pointing to the need for a clear legal framework and sustainable financing.

“These measures address the barriers that Kenyans confront today. The necessary legislative and fiscal processes will follow, with attention to sustainable financing, transparency and effective implementation,” he stated.

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