Good News for Workers: Ruto Cuts PAYE for Salaries Up to Ksh50,000

File Image of Predident William Ruto during a past Event

President William Ruto has announced proposed tax cuts targeting salaried Kenyans earning up to Ksh50,000, with the income tax rate set to drop from thirty per cent to twenty five per cent if approved by Parliamentks .

Speaking during a meeting with UDA aspirants at State House, Nairobi, on Wednesday, the President said the proposals would be formally forwarded to Parliament for debate and approval.

The tax changes will run alongside a separate amendment under which Kenyans earning below Ksh30,000 will be exempted from paying Pay As You Earn (PAYE) tax altogether.

According to President Ruto, the proposals are informed by what he described as improved fiscal discipline and positive economic decisions implemented since his administration took office in 2022.

“We are saying any Kenyan who earns up to Ksh50,000, we are reducing their taxes from thirty per cent to twenty five per cent. One point five million working Kenyans will not pay taxes,” Ruto said.

The Head of State added that the government had already initiated steps to lower the overall tax burden on low- and middle-income earners.

“We have begun the process of bringing down taxation. We will be taking a proposal that any Kenyan earning Ksh30,000 and below will not be paying taxes again,” he said.

Under the current tax regime, a worker earning Ksh50,000 is taxed at thirty per cent, translating to Ksh15,000 in PAYE before other statutory deductions.

This leaves the employee with Ksh35,000 before contributions to the National Social Security Fund, the Social Health Insurance Authority, and other mandatory deductions.

If Parliament approves the proposed twenty five per cent rate, the same worker would pay Ksh12,500 in PAYE, representing a monthly tax reduction of Ksh2,500.

The cut would raise the worker’s take-home pay to Ksh37,500 before other deductions, effectively adding Ksh2,500 to their monthly income, or Ksh30,000 annually, subject to the final structure approved by lawmakers.