Ruto’s Mashujaa Day Announcement That Could Change Take-Home Salaries for Kenyans

President William Ruto has proposed a tax relief measure that could see low income earners in Kenya take home more of their monthly salaries by exempting workers earning Sh32,333 or less from Pay As You Earn (PAYE) tax.

The proposal was announced during the Mashujaa Day celebrations in Eldoret on Tuesday, October 20, 2026, where the President outlined four measures his administration was pursuing to increase the amount of money available to Kenyans after taxation.

Ruto said the government had prepared a proposal to remove the PAYE burden from workers within the specified income bracket, a move that would allow them to retain more of their earnings to meet their daily needs.

“First, we have prepared a proposal to exempt Kenyans earning Sh32,333 per month or less from paying as you earn income tax,” the President said.

He noted that workers earning modest salaries often face competing financial demands, including food, transport, school fees and other household expenses. According to Ruto, exempting this group from PAYE would provide some financial relief at a time when many families are struggling to meet their daily costs.

“For workers on modest incomes, every shilling saved means more money for food, transport, school expenses, and the needs of their families,” he said.

PAYE is an income tax deducted from employees’ salaries by their employers and remitted to the Kenya Revenue Authority (KRA). Under the proposed arrangement, eligible workers earning Sh32,333 or less per month would no longer have PAYE deducted from their salaries if the necessary legal and administrative changes are approved and implemented.

However, the announcement remains a proposal. The actual benefit to workers will depend on the final policy measures and their implementation.

The proposed tax exemption formed part of a wider package of measures that Ruto said were intended to increase disposable income and ease financial pressure on ordinary Kenyans.

The President also outlined other proposals targeting the cost of property ownership and access to the digital economy, signalling a broader effort to address household financial pressures.

If implemented, the PAYE exemption could provide relief to workers at the lower end of the income scale. Its impact will depend on the final terms of the proposal and how the changes are put into effect.

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