Teachers to Gain Ksh1,250 More Monthly Under Proposed PAYE Cut, Ruto Says

President William Ruto has defended the Affordable Housing Levy, saying proposed income tax cuts would leave teachers with more money each month. According to reports, he made the case on Thursday, November 12, 2026, in Mombasa.

Ruto spoke at the opening of the Kenya Comprehensive School Heads Association meeting. He said the government plans to raise the monthly income exempt from Pay As You Earn (PAYE) tax from Ksh24,000 to Ksh32,000, reports indicate.

Using a teacher earning Ksh50,000 as an example, Ruto said the worker pays Ksh750 a month towards the 1.5 per cent Housing Levy. He said the extra Ksh8,000 left untaxed would save the teacher Ksh2,000 in tax. “The net effect is that you will get Ksh1,250 more into your salary,” he said, according to Citizen Digital.

Ruto also urged teachers to dismiss claims that the government takes a large share of their pay. He said 100,000 teachers have been hired in three years and 20,000 more will be hired next month. He added that 50,000 teachers will be promoted this financial year and that 20 per cent of affordable housing units are set aside for teachers.

The proposal is not yet law. Lawmakers must consider the changes before they take effect, according to People Daily. Treasury estimates cited by the paper show that workers earning between Ksh32,334 and Ksh50,000 would save up to Ksh596 a month. It adds that those earning above Ksh50,000 could face higher PAYE deductions.

Reports also note that mandatory deductions such as the Housing Levy, SHA and NSSF would continue. Critics have said the Housing Levy erodes workers’ take-home pay, according to Mwakilishi.

In February, Ruto proposed cutting the PAYE rate for workers earning up to Ksh50,000 from 30 per cent to 25 per cent, according to Kenyans.co.ke. He said earners below Ksh30,000 would be fully exempt.

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