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President William Ruto has announced that employed Kenyans who are earning less than Ksh30,000 will not pay taxes.
Speaking during the UDA Aspirants Meeting, Ruto said the government has started the process of reducing taxes for all Kenyans.
“We have begun the process of bringing down taxation. All Kenyans earning less Ksh 30,000 will not pay taxes,” Ruto said.
Under the proposed reforms, another 500,000 Kenyans earning up to Ksh50,000 will see their income tax rates reduced from 30% to 25%.
President Ruto explained that these changes are possible thanks to Kenya’s stable economy, and described them as part of a progressive approach to managing the cost of living.
Bottom-Up Economic Approach
“This is how progressively we are going to make sure that we manage the cost of living so that the people at the bottom of the pyramid can be supported,” Ruto said.
He emphasized that the government’s “bottom-up” approach is not just a slogan but a deliberate effort to ensure all Kenyans have the opportunity to live decently.
Equitable Taxation and Ongoing Concerns
Ruto added that the decisions are aimed at applying taxation more equitably, easing the burden on low-income earners and shielding them from excessive economic strain.
Even so, the government remains under pressure to address or reduce other mandatory statutory deductions, such as the Housing Levy, currently at 1.5%, which continues to weigh on the majority of Kenyans.
Vision for Kenya’s Future
The President highlighted that these reforms are part of a step-by-step plan to transform Kenya:
“We are changing the Republic of Kenya, and I am confident that no one will be left behind as we move from a third-world to a first-world country.
Our economy is the sixth most stable in Africa, according to credit rating agencies.”
The tax proposals will be forwarded to Parliament for consideration and approval, marking a significant step toward easing the tax burden for low- and middle-income earners.
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