Kenya President Proposes Income Tax Exemption Below KSh30,000

President William Ruto announced plans to exempt Kenyans earning KSh30,000 and below from income tax during the National Prayer Breakfast in Nairobi on Thursday. The measure aims to ease the burden on low-income earners. The government intends to present the proposal to Parliament as part of broader interventions to cushion vulnerable households.

"We can even find a way so that all those earning Sh30,000 and less are left out of the tax bracket," the President said.

Ruto acknowledged the proposal could create a KSh40 billion revenue gap. He stated the government would pursue innovative approaches to support ordinary Kenyans. The President also highlighted recent spending on fuel price stabilization and tax relief measures totaling KSh28 billion over the past two months.

Ruto said the government plans to establish a regional oil refinery with construction expected to begin next year. The facility would process crude oil from Turkana County. He reported that the government has mobilized KSh650 billion locally for the Affordable Housing Programme and disbursed KSh150 billion to health facilities under the universal healthcare programme over the past 18 months.