Low-income workers could soon stop paying income tax under proposals announced by President William Ruto at the 63rd Mashujaa Day celebrations in Eldoret.

Speaking at Kipchoge Keino Stadium on Tuesday, 20 October 2026, Ruto said the government would exempt Kenyans earning Sh32,333 a month or less from Pay As You Earn (PAYE). That is up from the Sh30,000 threshold he floated in May.

"We have prepared a proposal to exempt Kenyans earning Ksh32,333 per month or less from paying PAYE income tax," the President said, according to Kenyans.co.ke.

Stamp duty relief

Ruto also proposed that land transactions worth Sh1 million or less be exempt from stamp duty. Higher-value transactions would face progressive rates.

Stamp duty is currently 4 per cent within municipalities and 2 per cent outside them. A buyer of a Sh1 million plot could therefore save up to Sh40,000. The exemption would not cover other transaction costs or annual county land rates.

Cheaper phones

The President also announced plans to remove the 25 per cent import duty on mobile phones, which took effect on 1 July 2026 after the East African Community revised its Common External Tariff. The duty had pushed up smartphone prices.

Next steps

"I have directed the National Treasury to place all these proposals before Parliament next week," Ruto said.

None of the measures takes effect until Parliament passes the necessary changes. Lawmakers will also have to weigh the revenue impact, as Kenya faces Sh1.7 trillion in debt maturing before June 2027.

Business lobby wants more

The announcements come as the private sector pushes for wider relief. This week more than 600 chief executives called on the President to cut taxes and lower interest rates to support businesses.

The President also announced new milk prices for dairy farmers and expanded internship opportunities as part of a broader plan to ease the cost of living and create jobs ahead of the 2027 election.

Photos: Kenyans.co.ke