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Originally published by The Standard
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February 4, 2026
15h ago

Relief as government plans tax cuts for low-income earners

Relief as government plans tax cuts for low-income earners

The government plans to introduce tax amendments once Parliament resumes, aiming to ease the burden on low-income earners...

✨ Key Highlights

President William Ruto announced plans for significant tax amendments upon Parliament's resumption, aimed at easing the financial burden on low-income earners in Kenya. This initiative is part of the Kenya Kwanza administration's economic agenda to lower the cost of living.

  • Approximately 1.5 million Kenyans earning below Sh30,000 will be exempt from PAYE (income tax), while another 500,000 earning below Sh50,000 will see their tax deductions reduced from 30% to 25%.
  • President Ruto made these remarks at State House during a meeting with aspirants seeking to contest on the United Democratic Alliance (UDA) ticket in the 2027 General Election.
  • The President also stated that Kenya's economy has stabilized, citing falling inflation and improved foreign exchange reserves, with plans to privatize state-owned firms like Kenya Pipeline Company to fund a new airport project by June.

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