ADVERT 
President William Ruto has unveiled an ambitious plan to ease the tax burden on low-income earners, proposing a complete tax exemption for Kenyans earning up to Ksh30,000 per month.
Speaking on Thursday, the Head of State revealed that the government is exploring alternative revenue streams, paving the way for a major policy shift aimed at cushioning struggling households amid rising living costs.
“I did send a proposal to Treasury that because we have found a way to do many other things differently, it’s time to slow down on taxing low-income earners and remove some taxes from them,” Ruto said.
Currently, individuals earning up to Ksh24,000 enjoy tax relief. However, under the proposed reforms, this threshold could be raised to Ksh30,000 — effectively shielding a larger segment of Kenya’s workforce from taxation.
“We will be putting a proposal before Parliament to ensure that anyone earning Ksh30,000 or less will not pay any taxes,” Ruto confirmed, adding that the move is part of a broader strategy to promote economic equity.
The proposal is expected to be tabled in Parliament in the coming weeks.
In a separate revelation, Ruto disclosed resistance from current fuel suppliers over Kenya’s plan to partner with Nigerian billionaire Aliko Dangote to build an oil refinery in Mombasa.
According to the President, existing suppliers are uneasy about losing Kenya as a key market under the government-to-government fuel import arrangement.
“I was speaking with Mr Dangote, and he told me about the pressure from those we currently buy fuel from. They want us to continue sourcing from them,” Ruto said.
Despite the pushback, the President emphasized that the refinery project represents a long-term solution to Kenya’s recurring fuel challenges.
“Sometimes we must sacrifice short-term convenience for long-term transformation,” he stated.
Ruto also dismissed allegations that matatu operators were bribed to call off their recent strike following a meeting at State House, Mombasa.
“I know people say they were influenced — maybe they were, but by facts,” he remarked, explaining that the government had laid out the economic realities of fuel subsidies.
He noted that Kenya had previously spent between Ksh150 billion and Ksh160 billion annually on fuel subsidies, a model he described as unsustainable.
The proposed tax exemption signals a significant shift in fiscal policy, with the government aiming to strike a balance between revenue generation and protecting vulnerable citizens.
If approved, the changes could provide immediate financial relief to millions of Kenyans while reshaping the country’s taxation landscape.
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