Kenyans Are Still Waiting for Ruto’s PAYE Relief—Now He Has Made a New Promise

President William Ruto has renewed his promise to reduce the tax burden on salaried Kenyans, months after the government first announced plans to exempt low-income workers from Pay As You Earn (PAYE) tax.

On October 20, 2026, the President announced a revised proposal that would exempt employees earning KSh 32,333 or less per month from PAYE. He said the National Treasury had been directed to present the proposals to Parliament the following week.

However, the latest announcement comes after an earlier pledge failed to feature in the 2026/2027 Budget, leaving workers waiting for the promised relief.

In February 2026, Ruto and Treasury Cabinet Secretary John Mbadi announced plans to exempt Kenyans earning KSh 30,000 or less per month from PAYE.

The government also proposed reducing the tax rate for workers earning between KSh 30,001 and KSh 50,000 to 25 per cent.

The proposed changes were expected to increase take-home pay for eligible workers and ease pressure on households struggling with the cost of living.

However, the measures were not included in the Finance Bill as initially anticipated. Following the omission, Mbadi maintained that the government had not abandoned the plan and promised that the changes would still be pursued.

The latest proposal has yet to take effect. It must go through the relevant legislative and fiscal processes before employers can change how PAYE is deducted from salaries.

Ruto said the revised threshold would allow workers earning modest incomes to retain more money for food, transport, school fees and other household expenses.

Under the proposal, the exemption limit would rise from the previously announced KSh 30,000 to KSh 32,333 per month.

The government has presented the change as part of wider measures intended to ease financial pressure on ordinary Kenyans.

The next important step is the presentation of the proposals to Parliament, followed by the necessary approval and implementation procedures.

Until those processes are completed, workers should not assume that the proposed exemption has already changed their tax obligations.

For salaried Kenyans, the central question remains when the promised relief will finally appear in their payslips.

The latest announcement has renewed expectations, but the real test will be whether the government turns its promise into an implemented tax change.

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