President William Ruto has announced plans to exempt Kenyans earning Ksh32,333 or less per month from paying Pay As You Earn (PAYE) income tax as part of measures aimed at easing the financial burden on low-income households.
Speaking during the Mashujaa Day celebrations on Tuesday, October 20, Ruto said the government had prepared proposals to provide relief to workers struggling with the rising cost of living.
The proposed exemption is expected to leave low-income earners with more disposable income to meet essential expenses, including food, transport, school fees and other household needs.
President William Ruto. Photo: Courtesy.
The President noted that the proposed changes were part of broader efforts to improve the financial well-being of ordinary Kenyans and reduce the pressure on families with limited earnings.
In another measure, Ruto announced plans to revise stamp duty charges on land transactions to make property ownership more affordable.
He said the National Treasury had developed proposals to exempt land transactions valued at Ksh1 million or less from stamp duty while introducing progressive rates for transactions involving higher-value properties.
The proposed changes are intended to reduce the cost of acquiring and transferring land, particularly for low-income earners who face challenges meeting the financial requirements associated with property ownership.
The government hopes the changes will widen access to land ownership and make property transactions less costly for Kenyans with limited financial resources.
Ruto also announced plans to pursue the removal of the 25 per cent import duty currently imposed on mobile phones, a move that could lower the cost of purchasing the devices if implemented.
The President said the government would undertake the necessary legal and regional customs procedures to facilitate the proposed removal of the duty.
He highlighted the growing importance of mobile phones in education, business, banking and employment, particularly among young people seeking opportunities in the digital economy.
According to Ruto, making mobile phones more affordable would enable more Kenyans to access digital services and expand their participation in online business, financial services and employment opportunities.
The three proposals form part of the government’s broader efforts to ease living costs, improve access to essential services and support economic opportunities for low-income households.
However, the proposed tax and duty changes would need to go through the relevant processes before taking effect.
