President William Ruto has announced a new proposal to exempt low-income formal sector workers earning KSh 32,333 or less per month from paying Pay As You Earn (PAYE) income tax.
Speaking during the 63rd Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret, President Ruto revealed that the revised exemption threshold raises the state’s initial tax relief target from KSh 30,000 to KSh 32,333 per month.
“We have prepared a proposal to exempt Kenyans earning KSh 32,333 per month or less from paying PAYE,” President Ruto stated, adding that the intervention aims to increase disposable household income for low-wage workers grappling with high living costs.
Under current statutory tax guidelines, employees earning up to KSh 24,000 are effectively zero-rated due to the monthly personal relief of KSh 2,400. The new threshold, if approved, would shield a broader category of junior civil servants, private-sector workers, and low-income wage earners from income tax deductions.
President Ruto confirmed that he has directed Cabinet Secretary for the National Treasury John Mbadi to table the consolidated tax amendment bill before Parliament. Once formally submitted, the legislative package will undergo statutory public participation and parliamentary debate before any changes are reflected on monthly employee payslips.