Is the government finally giving Kenyans a break, or is this another promise they will have to wait for? President William Ruto has announced a proposed PAYE tax exemption for workers earning KSh 32,333 or less per month, promising to ease the cost-of-living burden on low-income earners.
Speaking during this year’s Mashujaa Day celebrations at the refurbished Kipchoge Keino Stadium in Eldoret, Uasin Gishu County, Ruto said the proposed tax adjustment would leave more money in workers’ pockets to cater for food, transport and other household expenses.
The proposal is expected to benefit an additional 362,000 Kenyans, raising the number of formal sector workers exempt from PAYE from approximately 1.4 million to 1.7 million out of the country’s 3.4 million formal employees.
The government had previously halted the plan, which was expected to be included in this year’s national budget.
In another proposed relief measure, Ruto announced plans to scrap the 25 per cent import duty on mobile phones, a move aimed at reducing importation costs and potentially making the gadgets more affordable for Kenyans.
The President also proposed exempting land transactions valued at KSh 1 million or less from stamp duty while introducing progressive rates for higher-value transactions.
On youth employment, Ruto announced plans to expand the National Internship Programme from its current 14,000 beneficiaries to accommodate an additional 50,000 young Kenyans beginning next year.
The President said the measures, alongside other government initiatives, would contribute towards creating approximately five million job opportunities by 2029.
However, the proposed tax changes and other relief measures will need to be implemented before Kenyans can fully benefit from the promised financial relief.
