Kenya President Ruto proposes tax relief for low-income earners

President William Ruto has announced several tax relief proposals aimed at reducing the cost of living for Kenyans. During the Mashujaa Day celebrations, Ruto proposed exempting individuals earning Ksh32,333 or less per month from Pay As You Earn (PAYE) income tax to help them manage expenses for food, transport, and education.

In addition to income tax relief, the President announced plans to remove the 25 per cent import duty on mobile phones. He characterized smartphones as essential tools for education, banking, and employment rather than luxury items. The removal of this duty is intended to increase access to the digital economy.

Furthermore, the National Treasury has developed proposals to exempt land transactions valued at Ksh1 million or less from stamp duty. The government intends to introduce progressive rates for higher-value properties to make land ownership more accessible to low-income citizens.