President William Ruto has assured Kenyans that measures taken by his administration earlier in its term are now beginning to ease pressure on household incomes, saying the country has reached a point where the cost of living can be reduced through targeted relief.
Speaking on Sunday during the official opening of the Africa Inland Church (AIC) Pipeline in Embakasi, Nairobi County, where he also joined worshippers for a prayer service, Ruto said the government first focused on fixing the economy so that it could now move to ease the financial strain on citizens.
“We made sacrifices earlier, we are beginning to reap the benefits. Housing is going on, health is going on and our roads are going on. We can now reduce taxes and that is how we will transform our nation,” Ruto said.
He explained that reforms are being carried out step by step to make sure the gains last over time.
“One step at a time, one programme at a time. I am very confident that we have set our eyes on moving Kenya from a Third World country to a First World country,” he said.
Ruto said the government’s current position is the result of decisions taken at the start of his administration to restore stability in the economy before expanding development programmes.
“All the things we can do now is because we did first things first. We stabilised our economy. That was the biggest problem we had, the stability of our economy,” Ruto said.
He told congregants that the improved outlook now allows the state to direct more attention to development projects and relief for ordinary Kenyans.
“Today I can confidently stand before Kenyans and say our economy is now stable,” he said.
The President also announced that all pending bills linked to road construction projects up to December 2025 have been settled, saying the move has freed up funds for new infrastructure work.
“We have now paid all the pending bills of road projects as of December 2025. We now have the resources to drive our development,” he said.
As part of plans to lower the cost of living, Ruto said proposals aimed at cutting the tax burden for workers will be taken to Parliament when it resumes.
“We are taking proposals to Parliament when they resume next week because we are in the process of reducing the tax burden on Kenyans,” Ruto said.
Under the proposed changes, low-income earners will receive full relief from Pay As You Earn deductions.
“All those earning Sh30,000 and below will not pay taxes on their income (PAYE). This is because our economy is now stable,” he said.
He added that employees earning up to Sh50,000 will also see a drop in the amount deducted from their salaries.
“Those earning up to Sh50,000 we reduce the tax by 5 per cent,” Ruto said.
Government plans indicate that earners of Sh30,000 and below would be fully exempt from PAYE, while deductions for those earning Sh50,000 would fall from 30 per cent to 25 per cent. Ruto said about two million people are expected to benefit from the move as part of efforts to ease the cost of living.
“A total of 2 million will benefit so that we can carry everyone along and we can begin to manage the cost of living,” Ruto said.
The National Treasury says the measure is meant to leave more money in the hands of workers earning below Sh30,000 a month so they can meet daily needs and support spending across the economy.
Ruto repeated that the planned relief has only been made possible by earlier steps taken to stabilise the country’s finances.
“All this is possible now because we made sacrifices earlier and today we are beginning to reap the benefits,” he said.
