Ruto signals PAYE exemption for workers earning below Ksh.30,000

This comes a day after Treasury Cabinet Secretary (CS) John Mbadi announced is seeking to exempt over 1.5 million employed Kenyans earning below Ksh.30,000 from paying Pay As You Earn (PAYE) tax. 

Speaking while meeting United Democratic Alliance (UDA) aspirants at State House on Wednesday, President Ruto noted that the proposal will propose the removal of tax payments for those earning below Ksh.30,000 and a reduction for those earning up to Ksh 50,000.

He said that the move is informed by his goal to ease the financial pressure on salaried workers lower the soaring cost of living that has long pressured households.

"When Parliament resumes next week we will present a proposal that every Kenyan earning less than Ksh.30,000 will not pay any taxes because we have steadied the economy," Ruto noted. 

Any Kenyan who earns up to Ksh.50,000 we are reducing their taxes from 30% to 25%. 1.5 million Kenya will not pay any taxes and another 500,000 Kenyans will have their taxes reduced

He further argued that the mov would not have been achieved "if we had not set the foundation right", adding that his administration is focused on taming the persistent cost-of-living pressures.

Meanwhile, CS Mbadi noted that the Ministry will present the Tax Laws Amendment Bill before Parliament for approval of the reforms ahead of the publication of the Finance Bill 2026.

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