Reprieve For Workers As Ruto Proposes Scraping PAYE For Kenyans Earning Under KSh 30,000

In a major policy shift aimed at easing the economic squeeze on working-class households, President William Ruto has announced a sweeping plan to entirely exempt low-income earners from Pay As You Earn (PAYE) tax deductions. Speaking during the National Prayer Breakfast on Thursd..

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In a significant move to alleviate financial pressure on low-income earners, President William Ruto has proposed to eliminate Pay As You Earn (PAYE) tax for Kenyans earning up to KSh 30,000 monthly.

This proposal aims to increase the take-home pay for those earning between KSh 24,000 and KSh 30,000 by removing the 10 percent PAYE deduction.
The initiative, announced by President Ruto during the National Prayer Breakfast on Thursday, May 28, 2026, is expected to create a KSh 40 billion revenue deficit.
The proposal follows lobbying from the Kenya Bankers Association (KBA), which advocated for broader PAYE relief to stimulate the economy.