The Central Organisation of Trade Unions (COTU) has asked Parliament to speed up consideration of President William Ruto’s proposal to exempt workers earning Sh32,333 per month from PAYE income tax.

COTU Secretary General Francis Atwoli said the exemption should be broadened to protect more low‑income earners, noting that many private‑sector employees fall within the targeted income bracket.

Ruto announced the measure during the Mashujaa Day celebrations in Eldoret, stating that the proposal would be presented to Parliament the following week.

The exemption forms part of a four‑pillar incentive package that also includes a 25 % cut to the import duty on mobile phones and an expansion of the national internship programme to 50,000 youths from 1 January.

According to the National Exchequer, Kenya has about 3,650,165 salaried workers, of whom roughly 1.5 million earn Sh30,000 or less per month; the new threshold raises the exemption limit to Sh32,333.

Atwoli welcomed the proposal, saying it would increase disposable income for low‑earning workers, especially in the private sector, and urged unemployed youth to use the concurrent mobile‑phone duty reduction to explore digital income opportunities.

Origins of the PAYE exemption plan

The idea of a PAYE exemption was first hinted at in February after Treasury Cabinet Secretary John Mbadi said the government was seeking to relieve more than 1.5 million employees earning below Sh30,000 from the tax.

Ruto framed the broader incentive plan as a response to Kenya’s recent economic stability, which he said creates an opportunity to share the benefits of progress with a wider segment of the population.