Kenya plans to scrap income tax for workers earning under KSh30,000
More than 1.5 million workers would pay no income tax, and 500,000 more would pay a lower rate.
Key points
- President William Ruto announced on 4 February 2026 plans to exempt more than 1.5 million workers earning KSh30,000 or less a month from income tax.
- A further 500,000 people earning up to KSh50,000 would see their rate cut from 30% to 25%.
- The government acknowledged the measure could cost about KSh40 billion in revenue; it requires approval by Parliament.
Kenya plans to stop taxing the incomes of its lowest-paid formal workers. On 4 February 2026, President William Ruto announced plans to exempt workers earning KSh30,000 or less a month from income tax.
Who would benefit
- More than 1.5 million workers earning KSh30,000 or less would pay no income tax.
- About 500,000 more, earning up to KSh50,000, would see their tax rate cut from 30% to 25%.
"To ease the cost of living for ordinary Kenyans, we plan to exempt more than 1.5 million workers earning KSh30,000 and below a month from paying income tax," Ruto said.
The cost
The government acknowledged that the change could create a revenue gap of about KSh40 billion, but said it was ready to find other ways to support ordinary Kenyans. The measure needs to be passed by Parliament to take effect.
Why it matters
Kenyans have faced years of high living costs, and tax rises sparked mass protests in 2024. Relief for the lowest earners would leave more money in the pockets of households that feel price rises most.
Sources
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