Kenyans Earning Below Ksh 30000 Will Not PAYE Tax
President William Ruto has announced plans to remove PAYE tax for low-income workers earning up to Ksh30,000 monthly. The proposal aims to reduce pressure on salaried Kenyans struggling with the high cost of living.
Speaking during the National Prayer Breakfast on Thursday, May 28, Ruto said the government wants to ease the burden on low-income earners. He revealed that he had directed the National Treasury to prepare the necessary proposals.
The President said workers earning up to Ksh30,000 would stop paying PAYE if Parliament approves the changes. The proposal raises the tax-free threshold from the current Ksh24,000.
Government Targets Relief for Low-Income Earners
Ruto said low-income workers deserve protection from heavy taxation during difficult economic times. He argued that reducing deductions would increase workers’ take-home pay.
Currently, employees earning from Ksh24,000 pay PAYE at a rate of 10 percent. The proposed changes would completely remove that deduction for workers below the new threshold.
The President said the government must rethink taxation policies affecting vulnerable Kenyans. He added that the reforms would support economic growth while protecting ordinary workers.
Treasury to Prepare Proposal for Parliament
Ruto confirmed that the Treasury will submit the proposal to Parliament for approval. Lawmakers will debate the changes before implementation.
The President admitted the move could create a Ksh40 billion revenue gap for the government. However, he insisted the administration would seek alternative ways to support economic growth.
He said Kenya should rely more on innovation and human resource potential instead of overtaxing workers. The government believes the reforms could stimulate spending and economic activity.
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