Ruto Unveils Four Proposals That Could Cut Taxes, Lower Land Costs and Create 50,000 Internship Slot

President William Ruto has announced four proposed measures that could ease the cost of living for Kenyans, make land transactions more affordable, reduce the cost of mobile phones and expand employment opportunities for young people.

The proposals target workers earning modest salaries, people seeking to buy or transfer land, mobile phone users and graduates struggling to secure jobs because they lack work experience.

Ruto announced the measures during Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret, Uasin Gishu County, on October 20, 2026.

He said the government wanted to leave more money in the pockets of ordinary Kenyans while widening access to property ownership, digital services and employment opportunities.

One of the key proposals would exempt workers earning KSh32,333 or less per month from Pay As You Earn (PAYE) income tax.

The President said the proposed tax relief would help low-income earners meet essential household expenses, including food, transport, school fees and other family needs.

Under the plan, workers within the proposed income threshold would no longer have PAYE deducted from their salaries if the measure is approved and implemented as outlined.

However, the proposal is not yet an implemented tax change. Ruto said the government would present the measures to Parliament for consideration.

The second proposal targets the cost of buying and transferring land, particularly for people purchasing relatively low-value properties.

According to the President, the National Treasury has prepared proposals to exempt land transactions valued at KSh1 million or less from stamp duty.

The government also intends to introduce progressive stamp duty rates for higher-value transactions.

Stamp duty is a tax payable on certain legal instruments used in property transactions. Depending on the transaction, the charge can add to the amount buyers must raise before completing a land purchase or transfer.

If approved, the proposed exemption could reduce the upfront expenses faced by eligible buyers and make it easier for some low-income earners to acquire property.

The proposal would also introduce a different approach to taxing higher-value transactions, although the applicable rates and detailed implementation rules were not specified in the announcement.

Ruto’s third proposal seeks to remove the 25 per cent import duty currently applied to mobile phones, subject to the necessary legal and customs procedures.

The President argued that making phones more affordable would help more Kenyans participate in the digital economy.

Mobile phones have become important tools for accessing online learning, mobile banking, business services, digital marketplaces and employment opportunities.

Ruto said the devices were no longer simply communication gadgets but had become essential for people conducting business and accessing services.

Removing the proposed import duty could reduce the cost pressure on importers and retailers. However, the extent to which consumers would benefit would depend on how the change is implemented and whether the savings are reflected in retail prices.

The fourth proposal focuses on youth unemployment and the difficulty many graduates face when seeking their first jobs.

Ruto announced plans to expand the National Internship Programme from January 2027, with an additional 50,000 internship opportunities for young Kenyans graduating from universities, Technical and Vocational Education and Training (TVET) institutions and the Kenya Medical Training College (KMTC).

The proposed expansion is intended to give more graduates an opportunity to gain practical experience after completing their studies.

Under the plan, successful applicants would receive monthly stipends during their internship placements.

The President said the selection process would be conducted through a transparent, digital and merit-based system, a measure intended to make the allocation of opportunities more accountable.

The government also plans to introduce incentives for private-sector employers to provide meaningful work experience to young people.

The move is aimed at addressing a common obstacle in the job market: employers often require previous experience, yet graduates have limited opportunities to acquire it before securing their first jobs.

Ruto acknowledged the difficulty, noting that many young people are unable to obtain employment because they lack experience, while gaining that experience often depends on securing employment in the first place.

The proposed expansion could create additional entry points into the labour market, particularly for graduates who have struggled to find opportunities in their areas of training.

However, the announcement did not provide detailed information on the monthly stipend amounts, the application dates, the eligibility criteria or the institutions that will coordinate the additional placements.

Young people interested in the programme will therefore need to await further official guidance before applications can be confirmed.

Ruto said he had directed the National Treasury to present the proposals to Parliament the following week.

The measures will require the relevant legal, budgetary and administrative processes before they can take effect.

If approved and implemented, the proposals could affect the amount of income tax paid by eligible workers, the cost of qualifying land transactions, the price of imported mobile phones and the number of internship opportunities available to graduates.

For now, Kenyans will be watching the next steps in Parliament and the government’s subsequent announcements to establish when the proposed changes could begin benefiting them.