Ruto Announces PAYE Tax Relief for Low-Income Earners in Kenya

President William Ruto has announced a proposed tax relief measure targeting low-income earners, with workers earning KSh 32,333 or less per month expected to benefit if the proposal is implemented.

The announcement was made during the Mashujaa Day celebrations in Eldoret on October 20, 2026, as the government outlined new measures intended to ease the cost of living and increase disposable income for households.

According to reporting by The Standard, the proposal would exempt qualifying low-income earners from Pay As You Earn (PAYE) income tax. The measure is aimed at workers whose monthly earnings leave them with limited money to cover essential expenses such as food, transport, rent, education and healthcare.

PAYE is deducted from employees’ salaries and remitted to the Kenya Revenue Authority. Any change to the tax bands or exemption rules could affect the amount of money workers take home at the end of each month.

The proposed relief comes amid continued public debate over taxation, household expenses and the government’s efforts to raise revenue while supporting ordinary Kenyans.

For employees earning close to the proposed threshold, the final details will be important in determining eligibility and the actual financial benefit. Employers would also need clear guidance on how any approved changes should be applied through payroll systems.

However, workers should distinguish between an announcement and a change that has formally taken effect. The implementation process, including any required legal or administrative steps, must be confirmed before employees can assume that their deductions will change.

The proposal is likely to attract attention from workers, employers, economists and tax experts as further details emerge.

Kenyans are advised to follow official communication from the National Treasury and the Kenya Revenue Authority for confirmation of the measure, its effective date and the categories of workers covered.

Source: The Standard, October 20, 2026. Follow its latest coverage here: https://www.standardmedia.co.ke/

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