economy 20 October 2026 Daily Monitor (Uganda)
Kenya Plans Tax Relief for Low-Income Earners
Kenyan President William Ruto has announced plans to remove the Pay As You Earn (PAYE) tax for individuals earning less than KSh32,333 per month. This move aims to ease the financial burden on the country's lowest-paid workers. Source: https://www.monitor.co.ug/uganda/news/kenya-s-ruto-moves-to-scrap-paye-for-low-earners-5639798
President William Ruto of Kenya is set to introduce significant tax relief for a segment of the population. In a move aimed at bolstering the purchasing power of low-income earners, the government is proposing to eliminate the Pay As You Earn (PAYE) tax for those bringing home KSh32,333 or less each month.
This proposed change, if enacted, would mean that a considerable number of Kenyans falling into the lower income bracket would no longer have a portion of their salaries deducted for income tax. The objective behind this policy shift is to allow these individuals to retain more of their earnings, thereby improving their disposable income and potentially stimulating local economies.
The PAYE system is a cornerstone of income tax collection in Kenya, and its removal for this specific income threshold signals a targeted approach to economic relief. While the full economic implications are yet to be detailed, the intention is clear: to provide direct financial benefit to those most affected by the rising cost of living.
Further details regarding the implementation and the precise timeline for this tax reform are expected to be announced by the Kenyan government in the coming weeks. The proposal comes amid broader discussions about economic policy and fiscal management within the East African nation.
Source: Daily Monitor (Uganda)