Major Relief for Low Earners: Ruto Proposes PAYE Tax Exemption for Kenyans Earning Below Sh32,333

President William Ruto has proposed exempting workers earning KSh32,333 or less per month from Pay As You Earn (PAYE) income tax as part of measures aimed at easing the financial burden on low-income earners.

Speaking during Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret, Ruto said the proposal would allow workers on modest salaries to retain more of their earnings for household expenses.

“We have prepared a proposal to exempt Kenyans earning 32,333 shillings per month or less from income tax,” the President said.

According to Ruto, the proposed change would bring an additional 362,000 workers into the tax-exempt category, raising the total number of people exempt from PAYE to about 1.7 million.

The President also announced plans to remove the 25 per cent import duty on mobile phones, a move intended to reduce the cost of digital devices and improve access to technology.

He further proposed exempting land transactions valued at KSh1 million or less from stamp duty.

On employment, Ruto said the government planned to increase the number of beneficiaries in the national internship programme from 14,000 to 50,000 next year.

He also outlined plans to create five million jobs by 2029 through initiatives in affordable housing, digital hubs and overseas employment opportunities.

The proposals are expected to be presented to Parliament for consideration. They would need the necessary approval before taking effect.

If adopted, the PAYE exemption would offer tax relief to eligible workers, while the other proposed measures could affect the cost of mobile phones, land transactions and access to employment opportunities.

Politrend feedback-opera-news-app@opera.com