Relief as government plans tax cuts for low-income earners
National
By
Fred Kagonye
| Feb 04, 2026
President William Ruto at State House during a meeting with 2027 UDA Aspirants. [PCS]
The government plans to introduce tax amendments once Parliament resumes, aiming to ease the burden on low-income earners.
President William Ruto on Wednesday, Feb 4, said Kenyans earning below Sh30, 000 will be exempt from paying taxes (PAYE), while those earning below Sh50, 000 will see their tax deductions reduced to 25 per cent from 30 per cent.
“About 1.5 million working Kenyans will no longer pay income tax, while another 500,000 will have their taxes reduced from 30 per cent to 25 per cent,” said Ruto.
He said the measures are part of efforts to lower the cost of living for low-income households under the Kenya Kwanza administration’s economic agenda.
“When we said bottom up, it was not a slogan, it was because we wanted to mind about the people at the bottom of the pyramid, allow them to live decently like the rest of the people of the republic of Kenya.”
Ruto made the remarks at State House during a meeting with aspirants seeking to contest on the United Democratic Alliance (UDA) ticket in the 2027 General Election.
According to UDA Chairperson Cecily Mbarire, the Party has so far attracted 12,353 aspirants, including 149 gubernatorial candidates, 279 senatorial hopefuls, 323 women representative aspirants, 1,372 parliamentary candidates and 10,230 aspirants for county assembly seats.
Singapore dream
The president also said Kenya’s economy had stabilised, citing falling inflation, improved foreign exchange reserves, and recent credit rating upgrades.
“Today, Kenya is the sixth-largest economy in Africa. Inflation is down, our dollar reserves are up, our exchange rate has come down, and interest rates are coming down. The country is much more stable,” he said.
He also said the government plans to privatise state-owned firms, including Kenya Pipeline Company, with proceeds earmarked for the National Infrastructure Fund. The first project under the fund, he said, will be the construction of a new airport, with its launch set for June this year.
Ruto further claimed the government has cleared all pending road construction bills for contracts signed up to December 2025.