COTU lauds Ruto’s move on PAYE reliefs for Kenyans earning under Ksh.32K

The Central Organisation of Trade Unions (COTU) has welcomed President William Ruto’s proposal to exempt workers earning KSh 32,333 or less per month from Pay As You Earn (PAYE) tax.

COTU Secretary-General Francis Atwoli praised the move, saying it could help low-income workers keep more of their salaries to meet their daily needs.

President Ruto announced the proposed tax relief on Tuesday, October 20, 2026, during the Mashujaa Day celebrations held at Kipchoge Keino Stadium in Eldoret, Uasin Gishu County.

According to the President, the plan is aimed at reducing the tax burden on workers who earn low salaries and giving them more money to spend on their families. <Cite refs={[“turn999757search0″,”turn999757search2”]}/>

PAYE is a tax deducted from employees’ salaries by their employers and sent to the Kenya Revenue Authority (KRA).

Atwoli said the proposal was an important step towards addressing the concerns of workers who have been calling for lower taxes on small incomes.

He noted that many workers, especially those in the private sector, could benefit if the proposal is approved and put into effect.

The COTU boss urged Parliament to speed up the process of considering the proposal so that eligible workers can begin benefiting from the tax relief.

If approved, the plan would allow workers earning within the stated income limit to keep the money that would otherwise be deducted as PAYE.

This could help families pay for food, transport, rent, school fees and other basic needs at a time when many Kenyans are facing high living costs.

Atwoli also welcomed the President’s proposal to remove the 25 per cent import duty on mobile phones. He said cheaper phones could help more young people access online jobs, digital services and business opportunities.

However, the PAYE exemption is still a proposal and is not yet in effect. It must go through the required government and parliamentary processes before it can be implemented.

The announcement has renewed discussion about taxes, workers’ earnings and the cost of living in Kenya.

Workers will now be waiting to see whether Parliament approves the proposed changes and when the new tax rules could begin.Sourcehttps://www.facebook.com/share/1GdPspveQV/

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