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Government and Policy

Relief For Low Income Earners As Ruto Hints At PAYE Exemption

BY Soko Directory Team · February 5, 2026 01:02 pm

By Robai Ludenyi,

Thousands of Kenyan workers earning modest salaries could soon take home more money at the end of the month if a new proposal by President William Ruto goes through. The President has signaled plans to exempt employees earning below KSh 30,000 from paying Pay As You Earn (PAYE) tax, a move that could bring relief to households struggling with the rising cost of living.

Speaking during a recent public engagement, President Ruto said the government is considering presenting the proposal to Parliament as part of ongoing tax reforms aimed at protecting low-income earners. He noted that many Kenyans at the lower end of the pay scale are already stretched thin by high food prices, transport costs, rent, and other daily expenses.

Under the current tax system, even workers earning modest wages are required to contribute PAYE, leaving them with very little disposable income. If approved, the exemption would allow affected workers to keep more of their hard-earned money, easing pressure on families and improving their quality of life.

The proposal aligns with earlier statements from the National Treasury, which has acknowledged the need to make the tax system fairer. Treasury officials have previously said the government is reviewing how taxes affect ordinary Kenyans, especially those earning low wages, as part of broader economic reforms.

For many Kenyans, the announcement has been met with cautious optimism. Workers in sectors such as retail, security, hospitality, and small offices say any form of tax relief would make a real difference. Some have expressed hope that the extra money saved from PAYE could help them cover basic needs like food, school fees, and medical expenses.

However, the President clarified that the proposal is still under consideration and must go through Parliament before becoming law. This means discussions, debates, and possible adjustments will take place before a final decision is made.

As Kenyans wait, the conversation around fair taxation continues to grow louder. Many are calling on lawmakers to move quickly and ensure that policies truly support those who need help the most. If implemented, the PAYE exemption could mark a significant step toward easing financial pressure on low-income earners and restoring hope for millions of working Kenyans.

Read Also: Weaponized Poverty, Silent Taxpayers, and the Political Scam Called ‘Hustler Nation

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