President William Ruto has proposed exempting workers earning up to Sh32,333 per month from Pay As You Earn (PAYE) tax, alongside scrapping stamp duty on land transactions valued at up to Sh1 million, in measures aimed at easing the cost of living.
The proposed tax relief is expected to increase disposable income for low-income earners by reducing the amount deducted from their monthly salaries.
Under the proposal, workers earning within the specified income threshold would no longer be required to pay PAYE, if the measure is adopted and implemented.
Ruto also announced plans to eliminate stamp duty on land transactions worth up to Sh1 million, a move aimed at lowering the cost of land ownership and making property transactions more affordable for Kenyans.
Stamp duty is a government tax payable on certain legal documents and property transactions, including land transfers.
The proposed exemption could particularly benefit low-income earners seeking to acquire land while reducing the financial burden associated with property purchases.
The measures form part of the government’s broader efforts to address the rising cost of living and provide financial relief to households facing economic pressures.
However, the implementation details, including the timeline for the proposed tax changes, will be key in determining when Kenyans can begin benefiting from the measures.
The proposals are expected to attract attention from workers, employers and the property sector, given their potential implications for household incomes and the cost of land transactions.
