COTU lauds Ruto's move on PAYE reliefs for Kenyans earning under Ksh.32K

The Head of State said at the Mashujaa Day Celebrations in Eldoret on Tuesday that the proposal will be presented to Parliament beginning next week. 

He said the move is part of his administration's measures to ease economic pressures on Kenyans, reflecting the progress he says he has achieved.

"The stability we have achieved in our economy now affords us an opportunity to ease the burden on sections of our population and ensure that more Kenyans share in the benefits of our progress," Ruto said.

In a statement, COTU said the move will cushion low-income earners from heavy taxation and more Kenyans should be added to the bracket of non-taxable wage earners. 

The Union urged Parliament to hasten the process of debating the proposal to cushion taxable workers.

President Ruto's proposal was part of a four-pillar incentive to protect Kenyans from the high cost of living.

Among them is a proposal to remove the 25% import duty on mobile phones which he believes is a gateway to employment. 

"Making phones more affordable will bring the opportunities of the digital economy within reach of more citizens," Ruto noted.

Other incentives include expansion of the national internship programme to accommodate 50,000 young Kenyans from January 1, each receiving a monthly stipend. 

He also mentioned that the National Treasury has developed proposals to exempt land transactions valued at Ksh.1 million or less from stamp duty and to introduce progressive rates for higher-value transactions.

COTU says the 25% exemption on mobile phones will help the youth develop skills and create opportunities in the digital space, urging them to take advantage of the move.

"...enter the digital space and explore the opportunities provided by various applications to earn a living and grow the Kenyan platform economy for their betterment," COTU added.

President Ruto first hinted at the move in February after Treasury Cabinet Secretary (CS) John Mbadi announced he was seeking to exempt over 1.5 million employed Kenyans earning below Ksh.30,000 from paying PAYE tax. 

According to the National Exchequer, about 3,650,165 Kenyans are salaried and 1.5 million earn Ksh.30,000 and below.