President William Ruto has announced proposed tax cuts aimed at easing the burden on low- and middle-income earners, saying workers earning up to Sh50,000 a month will pay less tax as the government moves to reduce the cost of living and support those struggling most with rising expenses.
Speaking during a UDA meeting on Wednesday, the President said the planned tax changes will be presented to Parliament and are based on economic reforms his administration has already put in place.
“We have steadied the economy, we would not be able to reduce taxes if we had not set the foundation right,” he said.
During the meeting held at State House in Nairobi, attended by UDA party aspirants, Ruto said the new measures are designed to protect workers at the lower end of the income scale while keeping the economy stable.
Under the proposal, the President said Kenyans earning below Sh30,000 a month will no longer pay income tax, a move he said will benefit about 1.5 million workers.
“Any Kenyan who earns less than Sh30,000 will not pay any taxes,” he said.
UDA party aspirants attending a meeting with President William Ruto at State House,Nairobi on February 4,2026.PHOTO/PCS
He added that employees earning up to Sh50,000 will see their tax rate reduced from 30 per cent to 25 per cent, easing pressure on another group of workers.
“Another 500,000 working Kenyans will have their taxes reduced… that is how progressively we are going to make sure that we manage the cost of living,” Ruto said.
The President said the tax relief reflects his government’s bottom-up economic plan, which he insisted was always meant to deliver real change and not just political messaging.
“It was not a slogan. It was because we want to mind about the people at the bottom of the pyramid,” he said.
Ruto said the government is rolling out reforms carefully and in stages to ensure long-term results.
“We are implementing it slowly, step by step, action by action, manifesto chapter by chapter,” he said.
He linked the planned tax cuts to what he described as improving economic conditions, saying key indicators show the country is moving in the right direction.
“Our economy is the sixth largest economy in Africa. Inflation is down. Our reserves are up. Our exchange rate has come down. Interest rates are coming down,” he said.
The President also said international credit rating agencies have recognised Kenya’s progress, dismissing criticism he said is driven more by online debate than facts.
“All the credit rating agencies, from Standard & Poor’s to Moody’s, all of them have upgraded Kenya’s credit rating. All of them are saying Kenya’s economy is stable,” he said.
Beyond tax changes, Ruto said the government is now turning its focus to agriculture and job creation as part of a long-term plan to grow the economy and raise living standards.
“We are moving one step at a time in the right direction,” he said, adding that Kenya has the potential to move “from a third world country to a first world country in one generation.”
The President also urged political leaders to abandon divisive politics and focus on ideas that improve people’s lives.
“The politics of Kenya is no longer about tribal arithmetic… it is about a vision, it’s about ideas, it’s about issues,” he said.
He ended his remarks with a call for unity, asking leaders and citizens to work together toward shared national goals.
“Together, we want to develop the vision, put together the ideas, assemble all issues, and transform our nation together—leaving no one behind,” he said.
