Ruto Announces New PAYE Relief for Kenyans Earning Ksh32,333 and Below

President William Ruto has announced a proposal to raise the Pay As You Earn (PAYE) tax exemption threshold from Ksh30,000 to Ksh32,333 per month, in a move aimed at reducing the tax burden on low-income earners.

Speaking during the 63rd Mashujaa Day celebrations at Kipchoge Keino Stadium in Uasin Gishu on Tuesday, October 20, Ruto said the proposed changes would allow workers earning Ksh32,333 or less monthly to keep more of their salaries.

The president said the government was seeking to ease the financial pressure on workers, particularly those struggling to meet the rising costs of basic household needs.

“We have prepared a proposal to exempt Kenyans earning Ksh32,333 per month or less from paying PAYE income tax,” Ruto said.

He added that the additional money would help workers meet everyday expenses, including food, transport and school costs.

The proposed adjustment would increase the income threshold below which employees would not pay PAYE, potentially benefiting more workers whose monthly earnings fall within the revised limit.

Ruto said he had directed the National Treasury to submit the proposal to Parliament the following week for consideration.

The proposal must go through the relevant legislative process before it can be implemented. Until the necessary changes are approved and take effect, existing PAYE rules remain applicable.

PAYE is the income tax employers deduct from employees’ salaries and remit to the Kenya Revenue Authority (KRA). The amount payable depends on an employee’s taxable income and the applicable tax bands and reliefs.

The proposed exemption is part of the government’s efforts to review the taxation of workers and provide relief to those earning modest incomes.

If approved, the higher threshold could increase the take-home pay of eligible employees, leaving them with more money to cover household expenses.

However, workers will have to wait for Parliament to consider the proposal and for the government to communicate the implementation date before the changes can be reflected in their payslips.

LINK: https://www.kenyans.co.ke/news/128240-ruto-raises-paye-exemption-ksh32333-and-below-sets-timeline?utm_source=Facebook&utm_medium=KI&fbclid=IwY2xjawVFcCNleHRuA2FlbQIxMQBwZG9mBHNydGMGYXBwX2lkDzQwOTk2MjYyMzA4NTYwOQABHqPzaqvW-98Z4KCpWNrgkDqXFUYqs0zPlmarUCDeBC5UQE0AhinsLaffVJfu_aem_qnKDVMHPnTSoVN9d425Y-A

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