By Afrireport 
President William Ruto has announced a proposed reduction in income tax for Kenyans earning up to Ksh50,000 per month, saying the move is aimed at easing the cost of living and increasing disposable income for millions of workers.
Speaking during a public address, the President said taxpayers in this bracket will see their Pay As You Earn rate lowered from 30 per cent to 25 per cent, a shift he described as part of broader efforts to make the tax system fairer and more responsive to economic pressures.
Ruto argued that low and middle income earners have carried a disproportionate burden as prices of food, fuel, and essential services continue to rise.
He said the government wants to ensure that ordinary workers retain more of their earnings to meet daily needs, save and invest in small scale ventures.
According to the President, the proposed change will be implemented through ongoing fiscal reforms and will be reflected in upcoming policy and budgetary adjustments once approved by Parliament.
He maintained that the administration remains committed to balancing tax relief for workers with the need to fund critical public services.
The announcement has been welcomed by sections of the public, particularly salaried employees who say a reduction in PAYE would provide immediate relief.
Some economists note that the move could stimulate consumer spending, as households would have more money available after taxes.
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The tax cuts should be accompanied by improved efficiency in public spending and stronger measures to seal loopholes and curb wastage.
Ruto insisted that his government is pursuing a growth oriented approach, focusing on expanding the tax base rather than overburdening a small segment of formal workers.
He said ongoing investments in job creation, manufacturing and the digital economy are expected to bring more Kenyans into taxable employment over time.
Attention will now turn to Parliament and the Treasury for details on timelines and implementation.
For many workers earning below Ksh50,000, the proposal signals potential financial breathing space amid a challenging economic environment.
The proposal also carries political weight, reinforcing campaign pledges centered on hustler focused economics.
Whether the promised relief materializes quickly will depend on legislative consensus, fiscal discipline and the government’s ability to align tax policy with growth, stability and public confidence in the months ahead for workers nationwide and small businesses.
