KENYA’S RUTO MOVES TO SCRAP PAYE FOR LOW EARNERS

Daily monitor

Kenyan President William Ruto has proposed scrapping Pay As You Earn (PAYE) income tax for workers earning KSh32,333 ($250) or less per month, in a move aimed at increasing their take-home pay.

Speaking during Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret, Uasin Gishu County, on Tuesday, Mr Ruto said the proposal forms part of his government’s Bottom-Up Economic Transformation Agenda.

“First, we have prepared a proposal to exempt Kenyans earning Sh32,333 per month or less from paying income tax,” Mr Ruto said.

He also announced that the National Treasury had proposed exempting land and property transactions valued at KSh1 million or less from stamp duty, while introducing progressive rates for higher-value transactions.

The government is also proposing to abolish the 25 per cent import duty on mobile phones to make them more affordable and expand access to opportunities in the digital economy.

“We will expand the National Internship Programme to accommodate 50,000 young Kenyans out of college, out of our TVETs, out of KMTC and out of our universities,” Mr Ruto said.

Defending his administration’s policies, Mr Ruto said government programmes should remain open to scrutiny and public debate.

“No Government programme is above criticism. No leader is beyond accountability. We should debate the merits of competing proposals, question their costs and demand results,” he added.

Mr Ruto also defended the government’s plans to address housing needs and the cost of living, pointing to the Affordable Housing Programme and universal healthcare under the Social Health Authority (SHA) as key interventions.

He reiterated that medical interns would receive a monthly stipend during their internship, adding that the expanded programme would use a transparent, digital and merit-based system to select beneficiaries.

With unemployment remaining a major challenge, particularly among young people, Mr Ruto pledged to create about two million digital jobs by 2029. He also pointed to plans to increase investment in agriculture, dairy production and industrialisation as part of the country’s economic transformation agenda.

The government plans to present four additional measures to Parliament next week, aimed at increasing the amount of money available to households.

Deputy President Kithure Kindiki commended Mr Ruto for what he described as progress in expanding democracy, civil liberties and social and economic rights during his four years in office.

Mr Kindiki said Kenya had made significant progress in strengthening democratic institutions and improving citizens’ lives since independence.

“Today, Kenya has strong democratic credentials and enjoys significant civil liberties,” he said.

Ethiopian Prime Minister Abiy Ahmed, who attended the celebrations, called for stronger cooperation among African countries, drawing parallels between sporting competition and the continent’s pursuit of shared prosperity.

“Our athletes have run side by side. Together, they have shown the world what Africa can achieve. We race as rivals; we build as partners,” Mr Ahmed said.

The proposals come amid growing frustration among Kenyan youths over limited job opportunities and difficulties securing stable, well-paying employment after completing their studies. Young people have staged protests calling for government action to address unemployment and other economic challenges.

Written by newsroom-radiopacis