Ruto Proposes PAYE Tax Exemption for Workers Earning KSh32,333 or Less

President William Ruto has announced a proposal to exempt workers earning KSh32,333 per month or less from Pay As You Earn (PAYE) tax, in a move aimed at easing the financial pressure on low-income households.

Speaking during Mashujaa Day celebrations in Eldoret on Tuesday, October 20, Ruto said the government had prepared measures to reduce the tax burden on workers struggling with the rising cost of living.

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

Ruto explained that the proposed exemption would allow workers to retain more of their earnings to cater for essential expenses, including food, transport, school fees and other family needs.

He noted that even small savings could make a significant difference to households surviving on modest monthly incomes.

The President also announced plans to exempt land transactions valued at KSh1 million or less from stamp duty, alongside proposals to introduce progressive rates for higher-value property transactions.

According to Ruto, the proposed changes are intended to lower the cost of acquiring and transferring land, particularly for Kenyans with limited financial resources.

The government is also seeking to remove the 25 per cent import duty on mobile phones through the necessary legal and regional customs processes.

Ruto argued that mobile phones had become essential tools for education, business, banking and employment, rather than luxury items.

He said making the devices more affordable would enable more Kenyans, particularly young people, to access opportunities in the digital economy.

The three proposals form part of the government’s broader efforts to ease the cost of living and improve access to essential services and economic opportunities.

However, the PAYE exemption, stamp duty changes and removal of the mobile phone import duty were announced as proposals, meaning their implementation will depend on the relevant legal and policy processes.

The PAYE proposal could particularly benefit low-income employees if adopted, although further details will be needed to establish when the exemption would take effect and how it would be implemented.

https://nairobileo.co.ke/news/article/30939/ruto-announces-proposal-to-exempt-kenyans-earning-ksh32333-or-less-from-paye-tax

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