Ruto signals PAYE cut for Kenyans earning up to Sh50,000

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President William Ruto has announced plans to reduce Pay As You Earn (PAYE) tax for Kenyans earning up to Sh50,000, signalling potential relief for millions of salaried workers strained by the rising cost of living.

Speaking on Wednesday during a meeting with UDA aspirants at State House, Nairobi, the President said the government intends to lower PAYE from 30 percent to 25 percent for workers within that income bracket, subject to parliamentary approval.

“Any Kenyan who earns up to Sh50,000, we are reducing their taxes from 30 percent to 25 percent,” President Ruto said.

“Those earning below Sh30,000 will not pay any income tax.”

The announcement gives clarity to remarks made earlier by Treasury Cabinet Secretary John Mbadi, who had, in recent days, hinted that the government was considering targeted tax relief for low- and middle-income earners as part of broader fiscal reforms.

President Ruto said the proposed changes would be submitted to Parliament, stressing that tax policy adjustments must balance revenue needs with the welfare of ordinary Kenyans.

“We want a fair tax system that allows government to function while giving wananchi breathing space,” he said.

If approved, the move would mark one of the most significant PAYE adjustments since the introduction of the graduated tax bands.

It also comes amid public pressure over high taxation, stagnant wages, and increased household expenses.

However, no timelines were given on when the proposals would be tabled in Parliament, or how the revenue gap created by the tax cut would be addressed.

The government has previously argued that tax reforms, including digital and consumption taxes, are necessary to stabilise public finances and reduce reliance on borrowing.