President William Ruto unveiled a proposal to remove Pay As You Earn (PAYE) tax for employees whose monthly earnings are below KSh 32,000 during the Mashujaa Day celebrations in Eldoret.

Under the plan, anyone earning less than KSh 32,000 per month would no longer be required to pay income tax, effectively raising the tax‑free threshold from the current KSh 24,000.

The Treasury Cabinet Secretary, John Mbadi, had earlier floated a similar relief measure aimed at low‑income salaried workers, signalling the government's intent to adjust PAYE bands.

If enacted, the exemption would free hundreds of thousands of workers from monthly tax deductions, increasing their disposable income and easing household cost‑of‑living pressures.

Current PAYE rules levy 10% on the first KSh 24,000 of taxable income and 25% on earnings between KSh 24,001 and KSh 32,333, with a personal relief of KSh 2,400 per month for low earners.

The proposal still requires approval by Parliament before it can be incorporated into the upcoming Finance Bill, and legislators will need to weigh the revenue impact against the benefit to low‑income workers.