Ruto Raises Proposed PAYE Exemption to Ksh32,333, Directs Treasury to Act Next Week

President William Ruto has announced plans to raise the Pay As You Earn (PAYE) tax exemption limit from Ksh30,000 to Ksh32,333 per month. The proposed change aims to reduce the tax burden on low-income workers and leave them with more money to meet their daily needs.Speaking during the 63rd Mashujaa Day celebrations at Kipchoge Keino Stadium in Uasin Gishu County on Tuesday, October 20, Ruto said workers earning Ksh32,333 or less per month would be exempt from paying PAYE if the proposal is approved. He noted that the extra money could help workers pay for food, transport and school expenses.

The president said he had directed the National Treasury to present the proposal to Parliament the following week for consideration. He added that the government would follow the necessary legal and financial procedures before implementing the proposed tax changes.

The latest proposal is a revision of an earlier plan announced in May, which sought to exempt workers earning Ksh30,000 or less per month from PAYE. The new limit would extend the proposed tax relief to more salaried employees.

Under the current tax system, employees pay different tax rates depending on their monthly earnings. The rate is 10% on the first Ksh24,000, while higher portions of income are taxed at increasing rates. Workers earning above Ksh32,333 pay higher rates, depending on their income.

However, employees currently receive a monthly personal tax relief of Ksh2,400, which generally offsets the PAYE payable by those earning up to Ksh24,000. The proposed exemption is not yet in effect and must undergo the required legislative process before it can be implemented. If approved, it could provide additional financial relief to low-income workers across the country.

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