PAYE relief, cheaper phones, internship: Ruto woos Kenyans with plan to ease living costs

President William Ruto has announced a series of measures to ease household expenses and expand opportunities for young people, aiming to reduce financial pressure on low-income families.

The first proposal would exempt workers earning Sh32,333 or less per month from Pay As You Earn (PAYE) income tax, allowing low-income households to keep more of their earnings for daily expenses.

Speaking at the Mashujaa Day celebrations at Kipchoge Keino Stadium, Ruto said the National Treasury had prepared the proposal, along with other measures, to reduce the cost of land transactions and mobile phones and to address youth unemployment.

“First, we have prepared a proposal to exempt Kenyans earning 32,333 shillings per month or less from paying pay-as-you-earn income tax,” Ruto said.

He said the proposed exemption would leave workers on modest incomes with more money for household needs such as food, transport and school expenses.

“For workers on modest incomes, every shilling saved means more money for food, transport, school expenses, and the needs of their families,” he said.

The President said the government would pursue the necessary legislative and administrative steps to implement the proposals, which he had directed the National Treasury to present to Parliament.

The proposal comes days after Treasury Cabinet Secretary John Mbadi announced that the government would submit a proposed amendment to Parliament in November to provide tax relief to Kenyans.

“In November, we are bringing that amendment to Parliament to tell those Kenyans that we appreciate the sacrifices, however little or however big you have made,” Mbadi said.

The second proposal, prepared by the National Treasury, would remove stamp duty on land transactions worth Sh1 million or less and introduce progressive rates for higher-value transactions.

Ruto said the proposal would lower the cost of acquiring and transferring property, particularly for Kenyans with modest incomes.

“This will help reduce the cost of acquiring and transferring land, especially for citizens at the bottom of the pyramid, and strengthen every Kenyan’s ability to own property,” he said.

Stamp duty is a tax on certain legal instruments, including documents used in property transactions.

 If approved and implemented, the proposed exemption would reduce the tax payable on qualifying transactions.

Ruto also announced plans to remove the 25 per cent import duty on mobile phones, subject to the required legal and regional customs processes.

He said mobile phones had become essential for education, business, financial services and access to employment opportunities.

“As we all know, a mobile phone is no longer a luxury. It is a classroom, a marketplace, a bank, and an office for many young Kenyans, a gateway to employment,” he said.

The President added that making phones more affordable would allow more Kenyans to participate in the digital economy.

The proposed removal of the duty is yet to take effect and will require the relevant legal and regional customs procedures.

The fourth measure aims to expand the national internship programme from January 2027 to accommodate an additional 50,000 young people from colleges, technical and vocational education and training (TVET) institutions, and universities.

Ruto said the programme would cover graduates from colleges, Technical and Vocational Education and Training (TVET) institutions, Kenya Medical Training Colleges (KMTCs), and universities.

He added that the interns would receive a monthly stipend.

“Placements will be conducted through a transparent digital and merit-based system, alongside incentives for private employers to offer meaningful work experience,” he said.

Ruto said the programme would help young people overcome the challenge of securing employment without prior work experience.

“Too many young people cannot secure employment without experience and a pathway from education to employment.

“The necessary legislative, fiscal, and administrative processes will follow, with attention to sustainable financing, transparency, and effective implementation,” he said.

Ruto added that he had directed the National Treasury to place the proposals before Parliament.

“Our purpose is clear: to put more money in the pockets of workers, make ownership easier for families, bring digital opportunities within reach, and open the doors of employment for our young people,” he said.

Ruto appeared keen to address growing frustrations among young Kenyans, recalling the 2024 Gen-Z protests, which were partly fuelled by anger over the cost of living and proposed tax measures.

“Citizens retain the right to challenge government decisions,” he said.

Ruto further announced plans to inject Sh5 billion into the Hustler Fund to expand financing for small businesses, as part of a broader effort to woo back more hustlers.

The President’s latest promises come against the backdrop of mounting pressure on households, with workers complaining that taxes and other deductions have eaten into their payslips.

At the same time, the cost of basic commodities remains a major concern.

Ruto devoted significant attention to agriculture, citing increased food production and lower farm input costs as evidence that his Bottom-Up Economic Transformation Agenda was beginning to bear fruit.

He said the Government had reduced the price of a 50kg bag of fertiliser from Sh7,500 in 2022 to Sh2,000, with more than 38 million bags subsidised since he came to power.

The Agriculture Ministry says the intervention has coincided with a sharp rise in maize production—from 34.3 million 90kg bags in 2022 to 71 million bags in 2025.

Official KNBS data put maize production at 47.6 million bags in 2023, before it declined to 44.7 million bags in 2024, largely due to erratic short rains.

The Government's latest figures therefore represent more than a doubling of maize output compared with the 2022 harvest, strengthening Ruto's argument that subsidising production rather than consumption is transforming the food sector.

Ruto also said maize imports had declined significantly as domestic production increased.

He announced that dairy farmers would earn Sh65 per litre from the end of the month, with an additional Sh2 bonus to be paid quarterly.

The President said Kenya had also expanded markets for agricultural products in Europe and China, opening new opportunities for farmers.

On healthcare, Ruto sought to contrast the Social Health Authority with the former National Health Insurance Fund, saying SHA was designed to serve all Kenyans.

He said more than 10,000 health facilities were receiving funds directly from SHA and that the scheme had paid out more than Sh107 billion since January.

“This is usawa healthcare for everyone,” he said.

Ruto said 350,000 young Kenyans were earning from the digital economy, while the planned increase in internships would create more opportunities for young people seeking their first jobs.

He also highlighted the expansion of Technical and Vocational Education and Training, noting that the number of TVET graduates had risen from 300,000 in 2022 to 1.3 million currently.

Infrastructure

The President said the Government was upgrading the Rironi-Mau Summit highway, which would eventually be extended to Malaba.

He also announced plans to extend the Standard Gauge Railway (SGR) to Malaba, saying the projects would help lay the foundation for an advanced economy.

On the economy, Ruto said his administration had stabilised the exchange rate and reformed the capital market, allowing the private sector greater access to credit.

He said the value of the Nairobi Securities Exchange had risen from Sh2 trillion to Sh4.2 trillion over the past four years.

Ruto said Kenyans had given his administration a mandate but not a blank cheque, in a rare acknowledgement of the growing demand for accountability.

“The demand for accountability has not been comfortable,” he said.

He defended the Bottom-Up Economic Transformation Agenda, saying the Government had sought to change Kenya's political contest from one centred on ethnicity and regions to one based on ideas and programmes.

“We want a country where every Kenyan has an equal chance to work and contribute to nation building,” he said.

The President also invoked the sacrifices of Kenya's freedom fighters, paying tribute to Nandi resistance leader Koitalel Samoei and thousands of other patriots who were tortured, exiled or killed during the struggle against colonial rule.

He said the freedom Kenyans enjoy today was the result of those sacrifices.

Sports legacy

Ruto also used the Eldoret platform to celebrate Kenya's sporting heroes, paying tribute to legendary athletes, including the late Kiprugut Chumo and former Olympic champion Kipchoge Keino, who attended the celebrations.

“Our champions have carried Kenya's flag with pride, and we salute those athletes who have represented our country,” he said.

He said the Government was investing in modern sporting facilities, including Talanta Sports City and the upgrading of Kasarani Stadium, ahead of the 2027 Africa Cup of Nations, which Kenya will co-host with Uganda and Tanzania.

Ruto said sports facilities such as Kipchoge Keino Stadium in Eldoret, Kamariny Stadium in Iten and Kapsabet Stadium would help nurture future sporting talent.