COTU Endorses Ruto’s PAYE Exemption for Low‑Income Workers
President William Ruto proposes exempting workers earning up to Ksh32,333/month from PAYE tax.
In Brief
- •President William Ruto proposes exempting workers earning up to Ksh32,333/month from PAYE tax.
- •COTU Secretary‑General Francis Atwoli welcomes the move, urging Parliament to fast‑track the bill.
- •The exemption aims to increase disposable income for private‑sector workers and reduce tax burden.
- •Ruto also plans to exempt mobile phones from 25% tax to support Kenya’s digital economy.
Why It Matters
The proposed PAYE exemption would lift the monthly tax burden for thousands of low‑income workers, potentially boosting household spending and easing financial strain in the private sector. By also reducing the tax on mobile phones, the government seeks to lower digital entry costs, encouraging participation in Kenya’s growing platform economy and supporting youth employment opportunities.
Key Details
- PAYE Exemption Threshold
- Ksh32,333 per month
- Mobile Phone Tax Exemption
- 25%
- Proposed by
- President William Ruto
- Union Leader
- Francis Atwoli, COTU Secretary‑General
- Sector Impacted
- Private sector workers
- Digital Economy Support
- Lower mobile phone prices
Context & Background
Kenya’s PAYE system has historically taxed workers at lower income levels, prompting trade unions to call for higher exemption thresholds. The current proposal seeks to address these concerns by raising the threshold to Ksh32,333/month.
Original Reporting & Sources
VNews is an independent briefing product. Original reporting remains credited to the following publishers:
This brief was synthesized automatically using attributed third-party reporting. VNews is a digital news publication produced under the VContent Group brand and operated by Francis Vincent Sunday in Ghana, independent from the publishers cited above. Read our AI Transparency Policy and Editorial & Corrections Policy.