Ruto seeks PAYE break for Kenyans earning up to KSh32,333

President William Ruto proposed on Oct. 20 exempting Kenyan workers earning KSh32,333 or less a month from Pay As You Earn income tax, a Capital FM news report distributed by AllAfrica said.

The ceiling equals KSh387,996 a year on a straight monthly-to-annual basis, according to Atlas360 calculations. The broader package includes a separate KSh1 million stamp-duty cutoff for land transactions and a 25% mobile-phone import duty proposal.

PAYE is income tax withheld from workers’ earnings. Ruto said the exemption would leave affected workers with more money for food, transport and school costs, according to the report.

Ruto spoke during Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret. He said the National Treasury would send the proposals to Parliament the following week for consideration, Capital FM reported.

The package also includes exempting land transactions valued at KSh1 million or less from stamp duty, a transaction tax. Ruto also proposed removing the mobile-phone import duty through the required legal and regional customs steps.

The fourth measure would expand the National Internship Programme by an additional 50,000 young people from January 2027. The report did not provide an estimated fiscal cost for the proposed tax relief or say how many workers would qualify.

The PAYE proposal is not yet in force. Capital FM reported that the exemption would require the relevant legislative processes before implementation.